What does Renters Insurance cover?
Renters insurance (sometimes referred to as "tenant insurance") helps cover unexpected events - otherwise known as covered perils - that cause damage to your belongings and/or the structure of your home or apartment. You may not always be able to prevent certain situations, such as theft, a break-in or a visitor's injury, water backup damage, certain natural disasters, and more in a rented property, so be sure to get coverage in place to protect your belongings!
This table breaks down the different types of coverages in a renters insurance policy and what they usually cover.
Can you afford not to have it?
No matter how modest your lifestyle, replacing all your belongings can add up.
Replacing the basics could look something like this:
This is a hypothetical illustration. Actual coverage amounts and limits vary based on individual needs and policy. (Image from Nationwide Insurance)
How much personal property coverage do I need?
Think of everything you own. The value of your belongings can quickly add up. How much would it take to replace them (brand new in today’s dollars, not the value of the item as is!) if they were damaged or destroyed?
When purchasing a renters insurance policy, you may have a few different choices when it comes to selecting personal property coverage. Here are a few things to keep in mind:
You'll want to set coverage limits that are appropriate for your situation. Creating an inventory of the belongings you store in your apartment or home may help you assess the value of your things so you can decide how much personal property coverage is right for you.
You may also have to decide what kind of personal property coverage to purchase. A policy that provides actual cash value protection typically covers belongings up to their current market value (taking depreciation into account). A policy that includes replacement cost coverage may help you pay to replace your items at today's retail prices after a covered loss. Rise Insurance recommends carrying replacement cost coverage on your belongings.
Property that may not be protected by renters insurance
Personal property coverage may not help protect everything you own. Certain types of belongings, such as jewelry or a coin collection, have limited coverage under a standard renters insurance policy. You may be able to add additional coverage, called scheduled personal property coverage, to your policy to help protect your valuables. A licensed Rise Insurance agent can help you determine whether this coverage makes sense for your situation.
Other considerations
Before renters insurance helps pay for a covered loss, you will need to pay a deductible (the amount you, as the insured, pay when you experience a loss before the insurance company begins to pay the rest of the loss. The amount of your deductible is tied to your policy's premium (the amount you pay your insurance company to keep your policy in force). You will find that the lower your premium, the more your deductible will be for a covered loss. Your deductible and premium are listed in your policy and can usually be adjusted based on your budget and needs. A Rise Insurance agent is ready to help you assess your policy limits today!