Renter’s Insurance

Renters commonly believe the landlord’s insurance will cover their belongings. It does not. A landlord’s insurance only protects the property itself; your belongings are your legal responsibility. To protect your personal belongings, you need to get renter’s insurance.

What Does It Cover? Renter’s insurance costs are usually low (often $15 to $20), and they provide three important types of protection:

• Personal Property Coverage: This covers your belongings if they are stolen or damaged. Always prefer replacement value over actual cash value. Replacement value will pay to replace your item with a new one instead of paying you the depreciated value of the old one.
• Liability Protection: This covers you if you are legally responsible for damage or injury. Examples include accidentally causing a fire or a visitor being injured in your apartment. If you don’t have insurance, you will be responsible for the resulting large legal bills or wage garnishment. 
• Loss of Use Coverage: This covers your additional living expenses, like your temporary housing and meals, in case your home becomes unlivable due to a covered disaster.

Many insurance companies offer discounts when you bundle renter’s insurance with auto insurance, so always look for bundling opportunities.