{"id":16389,"date":"2022-10-12T15:00:00","date_gmt":"2022-10-12T19:00:00","guid":{"rendered":"https:\/\/www.renthop.com\/content-manager\/?p=16389"},"modified":"2023-07-22T11:36:26","modified_gmt":"2023-07-22T15:36:26","slug":"renters-insurance-question-guide","status":"publish","type":"post","link":"https:\/\/www.renthop.com\/blog\/renters-insurance-question-guide\/","title":{"rendered":"Renter’s Insurance – What, Who, and Why?"},"content":{"rendered":"\r\n

Car insurance, boat insurance, life insurance: for every worry in life, it seems like there\u2019s a way to insure it. On the other hand, renter’s insurance is a useful alternative for those who don\u2019t own a home or a boat but want to ensure their valuables and living space receive similar protections. As of 2020, only about 57% of American renters have some form of insurance, compared to around 85% of homeowners<\/a>. With that in mind, the team at RentHop has compiled a list of pros and cons, tips for any renter considering insuring their valuables, and the best ways to avoid overpaying!\u00a0<\/p>\r\n\r\n\r\n\r\n

What is Renter’s Insurance?<\/h2>\r\n\r\n\r\n\r\n

Renter’s insurance is a policy that covers a renter\u2019s items of personal or financial value in case of loss or damages. While typically, homeowner’s insurance<\/a> may cover physical damages like roof leaks, fences, and air conditioning units, renter’s insurance covers personal property, personal liability, and loss of use. Renter’s insurance typically covers personal property: electronics, clothes, furniture, sports equipment, and other appliances. Jewelry and collectibles depend on the policy. Renter’s insurance often covers these items at home and when you\u2019re out and about. If your insured tablet computer is stolen from your car while away from home, the coverage will still be active. The flexibility and range of renter’s insurance make it a great option for various living situations. Insurance applies to single-family studios to co-ops and other communal living situations.<\/p>\r\n\r\n\r\n\r\n

Who Needs Renter’s Insurance?<\/h2>\r\n\r\n\r\n\r\n

While most states do not require that tenants acquire insurance, landlords can require<\/a> a policy in the lease. Renters typically have a month to acquire a policy after moving in. Most housing professionals recommend that renters acquire a policy, even if their local government or landlord does not require one. The landlord’s insurance typically only covers the building but excludes your personal possessions. If there is a robbery, natural disaster, or another emergency, you’re out of luck.\u00a0<\/p>\r\n

Notably, most policies cover named perils (or covered perils). These are a specific set of situations and conditions that the policy covers. Renters will need to purchase an add-on policy for other scenarios, like an earthquake. Renters who live in areas with a high risk of flooding<\/a> or other unnamed perils should seek out these extended policies as part of their renter’s insurance.<\/p>\r\n\r\n\r\n\r\n

Other Incentives for Purchasing a Policy<\/h2>\r\n\r\n\r\n\r\n

Personal Liability<\/h3>\r\n\r\n\r\n\r\n

Besides protecting your valuables from damages or theft, many renter’s insurance policies include protections around personal liability and loss of use. Personal Liability is an important facet of renter’s insurance as it protects the renter in some cases should harm befall a guest while on or near their property. For example, if a guest were to be harmed while at your apartment, a personal liability policy could help with the medical bills or any other expenses rendered from the accident if you\u2019re legally responsible. Not every policy includes a personal liability clause, so look closely at your benefits if you\u2019re interested in having it.<\/p>\r\n\r\n\r\n\r\n

It\u2019s Relatively Cheap<\/h3>\r\n\r\n\r\n\r\n

Renter’s insurance can usually be bought for dollars daily, with most policies falling between $14 and $22 per month, depending on the coverage. In 2018 national premiums ranged between $126 in North Dakota and $252 annually in Mississippi. Comparatively, depending on where you live, homeowner insurance in 2022 can cost anywhere from $780 to just under $3400 a month! Some newer policies for renter’s insurance start as low as $5 a month. However, at these prices, you\u2019re unlikely to have all of the perks and covered liabilities as traditional renter’s insurance.<\/p>\r\n\r\n\r\n\r\n

Loss of Use<\/h3>\r\n\r\n\r\n\r\n

Loss of use, also known as Coverage D<\/a>, is coverage that reimburses renters in the case that their home becomes uninhabitable for any reason. Short of a natural disaster, many seemingly minuscule issues could render a living space uninhabitable, such as certain types of mold, widespread leaks, or infestation<\/a>. Loss of use insurance would protect against covered perils and help with expenses if you need to relocate temporarily. Most policies do not cover flooding. However, policies typically cover tornadoes or fires. It\u2019s important to be clear which named perils are specifically covered as part of your loss of use coverage when considering any policy.<\/p>\r\n\r\n\r\n\r\n

What are Covered Perils?<\/h2>\r\n\r\n\r\n\r\n

Renter’s Insurance policies are very specific in the types of events covered, and only those listed will result in a payout should they occur. These situations are called named perils or covered perils. Most renter’s insurance covers damages from fire, theft, wind, hail, frozen pipes, vandalism, explosions, and falling objects. Some policies also cover on-site storage units, although that\u2019s not typical. These named liabilities are wide-ranging and not limited to self-contained incidents. For instance, your renter’s insurance will cover a fire that starts in another unit that causes damage to yours, either through smoke damage, fire damage, or water damage from sprinklers, so long as it\u2019s a specifically named peril.\u00a0<\/p>\r\n\r\n\r\n\r\n

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