Cheapest Renters Insurance (2024)
When renting property, renters insurance is essential to protect yourself from liability, but you may be wondering, what does renters insurance cover? We'll review the common 17 named perils, explain cash value vs. replacement cost coverage, and provide advice on ways to lower your renters insurance cost.
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Dani Best
Licensed Insurance Producer
Dani Best has been a licensed insurance producer for nearly 10 years. Dani began her insurance career in a sales role with State Farm in 2014. During her time in sales, she graduated with her Bachelors in Psychology from Capella University and is currently earning her Masters in Marriage and Family Therapy. Since 2014, Dani has held and maintains licenses in Life, Disability, Property, and Casualt...
Licensed Insurance Producer
UPDATED: Feb 27, 2024
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Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: Feb 27, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- If you are renting property, you need renters insurance to protect yourself from liability
- Renters insurance doesn’t cover natural disasters such as earthquakes or floods but may cover damage caused by other types of storms, including thunderstorms, hurricanes, and tornadoes
- Renters insurance will protect your personal property, including pets, and will protect you from liability when you or your household members injure others or cause property damage
Curious about what renters insurance covers? Look no further. In this informative article, we’ll explore the key topics surrounding renters insurance coverage. From protecting your personal belongings and liability for injuries to coverage for extra living expenses, we’ll provide insights to help you understand the benefits of renters insurance.
Don’t miss out on securing your peace of mind. Enter your ZIP code now to compare rates from the best insurance providers and find the perfect renters insurance plan for your needs.
What Renters Insurance Typically Covers
Typically, renters insurance includes coverage for:
- Your personal property
- Liability for injuries incurred within your home
- Extra living expenses if your rented house becomes uninhabitable
- Liability for any property damage that occurs within your rented property
- Liability for any injuries you, your family members, and pets cause to others or those that occur within your property
It is worth noting that renters insurance will not cover the actual structure in which you live and any structural problems — that is the property owner’s responsibility.
Below is a breakdown of what your renters insurance will cover. You need to understand the protection available to choose the right insurance.
Personal Property Protection
Over 1.11 million burglaries happen each year, losing each victim an average of $2,661 worth of property. So, renters insurance comes in handy, ensuring you will be financially protected from losing some of your personal property to burglars.
In addition, renters insurance will compensate you if you lose your property to fire, electrical or plumbing malfunctions, vandalism, riots, and explosions. Also, some forms of weather-related damage to your belongings will be covered. For example, if a hailstorm damages your possessions, renters insurance will likely cover that.
Liability Protection
If something terrible happens to someone or their property while in your home and they get injured, you could get sued. The same rule applies if you and members of your household, including pets, harm others or cause damage to their property in or outside your property.
For example, if your dog bites your neighbor’s child while they are playing with your children, you will likely be held responsible. And you could end up getting sued and paying fines and legal fees.
However, if you have renters insurance, you will be protected from liability to a specified extent. Most liability protection limits start at $100,000 and include funds for paying your legal fees. You can also pay an extra $300 for an additional $1 million worth of liability protection.
In addition, your renters insurance may provide for $5000 worth of no-fault medical insurance. This coverage will protect you if someone is injured on your property.
Extra Living Expenses
About 10.5 million Americans have been displaced in the past decade due to disasters. Renters insurance provides coverage for any extra expenses you incur once a disaster occurs.
In addition, renters insurance will reimburse you for the difference between your usual spending and what you spend after the disaster. Other expenses it will cover include temporary living accommodations and restaurant meals.
HO-4 is renters insurance
The renters insurance policy is a special type of homeowners insurance, called the HO-4 policy. This type of policy includes personal property coverage and liability damage and injury protection. All property covered by a landlord policy is excluded from a renters policy. It is meant to insure a person or family’s possessions and financial stability, regardless of the liabilities of the building owner.
Named Perils
Named perils differ from policy to policy, but typically include as many as 17 different potential risks. The likelihood of each risk will affect the cost of insurance in the region, and may affect what perils are included in the standard policy. Here is a partial list of perils that are covered by most policies:
- Fire or lightning
- Windstorm or hail
- Explosion
- Riot or civil disturbance
- Vehicles, including aircraft
- Smoke
- Vandalism or malicious mischief
- Theft
- Volcanic eruption
- Falling objects
- Weight of ice, snow, or sleet
- Accidental discharge or overflow of water
- Freezing
Note, flood insurance for renters must be purchased separately.
Read more: What’s the difference between flood insurance and water backup coverage?
Replacement or Cash Value
Renters insurance can be purchased for cash value or replacement cost coverage. Replacement cost will cost a little more on the premiums but will replace your lost property regardless of the current price. Cash value coverage will only pay out the depreciated value of your property, which is typically a percentage of the actual cost to replace lost items.
Renters Insurance and Pets
If you have pets, renters insurance is a good idea. Listing your pets on your renters policy will provide protection if a liability situation, whether it is damage or injury related, arises as a result of your pets. Even an aquarium could burst and cause damage to your property and the building, so the need for insurance is not limited to dogs or cats.
Read more: Best Renters Insurance for Pet Owners
Cheaper Renters Insurance
You can save money on renters insurance, as with other home policies, by taking advantage of discounts offered by the insurance company. Discounts may be related to the location of the home, security devices installed on the property, or related to your personal information. There are over a dozen discounts available, but not all discounts will be available from every company.
Tracey L. Wells Licensed Insurance Agent & Agency Owner
Landlord Insurance Coverage
In a rental property, the landlord is considered responsible for all permanent structures as well as the dwelling itself. A landlord policy does not cover damages or injuries related to a tenant’s property, nor does it provide for replacement of tenant property except where that property was lost or damaged as a result of the insured structures or liabilities.
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Things Renters Insurance May Not Cover
Although renters insurance is quite comprehensive, there are certain situations where renters insurance may not provide protection.
Does renters insurance cover car damage?
Renters insurance will not cover car damage. However, it may pay for lost or damaged items in your car when a covered peril, such as theft occurs on your rented property.
Does renters insurance cover earthquakes?
Renters insurance usually doesn’t cover earthquakes. However, you may be able to get a separate policy for that.
Does renters insurance cover flooding?
Renters insurance usually doesn’t cover flooding. Your landlord is not responsible for it either. You would need separate insurance to obtain flooding coverage.
Does renters insurance cover personal injury?
Renters insurance doesn’t cover personal injury to you or your family members. But it does provide cover for you or your family members when you cause injuries to other people or if people other than your family are injured on your property.
Case Studies: What Does Renters Insurance Cover?
Case Study 1: Fire Damage
Amy, a tenant in a multi-story apartment building, experienced a devastating fire that originated from a neighboring unit. The fire spread rapidly, causing extensive damage to her personal belongings, including furniture, electronics, and clothing. Fortunately, Amy had renters insurance, which covered the cost of replacing her damaged possessions.
Case Study 2: Theft
John, a student living off-campus, returned home to find his apartment had been broken into. His laptop, smartphone, and valuable jewelry were stolen. Thanks to his renters insurance, John was able to file a claim and receive reimbursement for the stolen items, allowing him to replace them without incurring a significant financial burden.
Case Study 3: Water Damage
Sarah, a renter in a ground-floor apartment, experienced a pipe burst in the building, resulting in extensive water damage to her furniture, flooring, and electronics. With renters insurance, Sarah was able to receive compensation for the cost of repairs and replacements, reducing her financial strain in dealing with the unexpected incident.
Case Study 4: Liability Coverage
Mark hosted a small gathering at his rented house, and one of his guests accidentally tripped over an exposed wire, resulting in injuries. The guest decided to pursue a legal claim against Mark for the medical expenses incurred. Luckily, Mark had renters insurance, which covered the liability costs associated with the incident, including legal fees and the guest’s medical bills.
Case Study 5: Loss of Personal Belongings During Travel
Lisa, a frequent traveler, was on vacation when her luggage was lost during a flight. Her luggage contained valuable items, including clothing, electronics, and jewelry. Fortunately, Lisa’s renters insurance extended coverage to her personal belongings, even when she was away from her rented residence. As a result, Lisa was able to file a claim and receive reimbursement for the lost items.
Case Study 6: Michael’s Stolen Bicycle
Michael, an avid cyclist, had his bicycle stolen from the communal bike rack in his apartment complex. Being an expensive and cherished possession, Michael was devastated by the loss. However, since he had renters insurance, he was able to file a claim and receive compensation for the stolen bicycle. This helped him replace his bike and continue pursuing his passion for cycling.
Case Study 7: Emily’s Temporary Accommodation
Emily’s rented house suffered severe damage due to a storm, rendering it uninhabitable. She was forced to find temporary accommodation while her home was being repaired. Fortunately, Emily had renters insurance with additional living expenses coverage. This coverage helped cover the cost of her temporary accommodation, allowing her to maintain her standard of living until she could move back into her home.
Case Study 8: David’s Dog Bite Incident
David’s dog accidentally bit a guest in his rented apartment, causing injury. The injured person required medical attention and subsequently filed a lawsuit against David. Thankfully, David had renters insurance that included personal liability coverage. His insurance policy covered the legal expenses and the damages awarded to the injured person, sparing him from significant financial strain.
Case Study 9: Jessica’s Loss due to Natural Disaster
Jessica’s rented house was severely damaged by a natural disaster, leaving her without a place to live. However, Jessica had renters insurance that included coverage for loss due to natural disasters. She contacted her insurance provider, documented the damage, and was provided with the necessary financial assistance to find alternative housing until her rented house was restored.
Bottom Line: Renters Insurance Is Beneficial
No matter how secure your neighborhood may seem, your rented property may still get burglarized. It can be expensive to replace all the personal possessions you lose. In addition, accidents happen, and someone may get injured on your property or by a member of your family.
Rather than risk getting sued for events you have no control over or doing without items you need, you should invest in renters insurance. You are better off having it and not needing it, than needing it and not having the coverage.
Frequently Asked Questions
What is renters insurance?
Renters insurance is a type of insurance policy that provides coverage for a renter’s personal property and liability in the event of certain covered losses or damages.
What does renters insurance cover?
Renters insurance typically covers personal property such as furniture, electronics, and clothing in the event of theft, damage or loss due to covered perils such as fire, smoke, lightning, windstorms, and certain types of water damage. Renters insurance may also provide liability coverage for bodily injury or property damage the policyholder is responsible for, both inside and outside of the rented property. Additionally, some renters insurance policies may offer additional coverages such as temporary living expenses if the rented property becomes uninhabitable due to a covered loss.
What is not covered by renters insurance?
Renters insurance typically does not cover damage or loss caused by earthquakes or floods. It also may not cover losses due to intentional acts, war, or nuclear hazards. In addition, renters insurance typically does not cover damage or loss to property that is not owned by the policyholder, or damage caused by pets or business activities.
Is renters insurance required by law?
Renters insurance is not required by law, but some landlords may require tenants to have renters insurance as a condition of the lease.
Is renters insurance required in California?
While renters insurance isn’t required by state or federal law in California, keep in mind that it is legal for a landlord to require it.
Is renters insurance worth it?
Renters insurance can provide valuable financial protection for renters, especially in the event of a major loss. It is generally affordable, with premiums starting as low as $10 per month, making it a good investment for most renters.
How much does renters insurance cost?
The cost of renters insurance can vary depending on factors such as the amount of coverage, the location of the rented property, and the policyholder’s claims history. However, renters insurance is generally affordable and can provide valuable protection for personal property and liability.
How do I know how much renters insurance coverage I need?
The amount of renters insurance coverage needed will vary based on the value of the policyholder’s personal property and the level of liability protection they desire. To determine the appropriate amount of coverage, policyholders can create an inventory of their personal property and estimate its total value.
It is also recommended to speak with an insurance agent who can provide guidance and help policyholders choose the appropriate level of coverage for their needs.
Why should college students have their own renters insurance policy?
Since your landlord’s insurance won’t cover repairing or replacing your possessions in case of theft, fire, or other commonly covered damages, you should get renters insurance. But first look into your parents home policy, which may include coverage for children who are attending college full time.
How do I get a renters insurance quote?
The quickest and easiest way to get multiple renters insurance quotes from top insurance companies is to use our free online quote tool. Just enter your ZIP code to get started.
Compare The Best Insurance Quotes In The Country
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Dani Best
Licensed Insurance Producer
Dani Best has been a licensed insurance producer for nearly 10 years. Dani began her insurance career in a sales role with State Farm in 2014. During her time in sales, she graduated with her Bachelors in Psychology from Capella University and is currently earning her Masters in Marriage and Family Therapy. Since 2014, Dani has held and maintains licenses in Life, Disability, Property, and Casualt...
Licensed Insurance Producer
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.