Life is complicated, insurance doesn't have to be.
Read time: 3.5 minutes
When you looked over your lease agreement, you probably saw a
section explaining that your building is insured. That section is
referring to the insurance policy your landlord has on the building.
Of course, it’s important that your building is insured.
However, it’s also important to know that their insurance policy
does not generally cover your personal possessions.
That’s where renters insurance comes in.
What does renters insurance cover?
Renters insurance covers your personal property, additional
living expenses and personal liability. The best part is, it follows
you wherever you go! Of course, there are a few situations this may
not apply so talk to your agent.
Let’s take a look at each of these base coverages.
If your belongings are damaged or stolen, this coverage can
pay to replace them. This goes beyond your home. Your personal
belongings are covered anywhere in the world. If your belongings are
damaged or stolen while you’re traveling, your renters insurance
policy may cover the cost to replace them.
This coverage may apply when your belongings are damaged or
Typically, this coverage will pay you the item’s
depreciated value. So, if your six-year-old laptop is stolen,
this coverage pays the cost to purchase a six-year-old laptop today.
This will be less than what you originally paid because of depreciation.
If you’re looking through the items at your place and
realizing the depreciated value may leave you with more out of
pocket expense than you’d like, consider adding our Personal
Property Replacement Cost coverage. This coverage allows
you to make an additional claim for the depreciation that was
applied once your item is replaced or your property is repaired.
Read more: Insurance
Claim: What It Is, How to Start, and What Happens Next
If your apartment/home is damaged and unfit to live in, you may
need to stay somewhere else. Some of the costs of your hotel stay,
food and other necessary items can be reimbursed with this coverage.
This coverage may also apply when part of your home isn’t
able to function as intended. For example, your home may still be
fit to reside in but your kitchen is no longer functional because of
the damage covered in your claim. In this case, the additional
living expenses coverage may pay for some of your food costs.
Read more: How
to Keep Pipes From Freezing & How to Fix Them
Nobody wants to be responsible for somebody getting hurt at
your place. But, when your friend manages to mess up their knee
while playing charades, this coverage can come in handy!
Other situations your liability coverage may be
When you’re away from home, your liability coverage can also
help in situations like when you drive a golf ball into somebody’s
window while playing a round.
Beyond the legal ramifications of injuries that may happen to
your guests on your property, your renters insurance may also
provide medical payments to others. This coverage can apply to
injuries that occur on your rented property, or nearby, to pay for
your guest’s resulting medical expenses.
Beyond these coverages included in most base renters
insurance policies, you can usually add on optional coverages. For
our policies this includes:
What does a landlord’s insurance policy cover?
Let’s look at an example.
You return to your apartment after a nice weekend getaway to
find that your living room window is shattered! After further
examination, you notice your laptop is missing and somebody has
clearly gone through your things! Not the relaxing evening back at
home you expected.
Read more: Do
You Know What to Do After a House Robbery?
Assuming you have renters insurance with replacement cost
coverage and your landlord has insurance on the building, here’s how
things will likely play out:
Your landlord’s insurance may cover: The cost to
replace the window and residual damage to your walls or floors.
Your renters insurance may cover: The cost to
purchase a replacement for your laptop.
Without renters insurance, you are primarily responsible for
any costs to replace your items. Your landlord’s insurance is there
typically to cover the building, not your belongings.
Finding a renters insurance policy that’s best for you (and
your budget) doesn’t have to take hours of comparison shopping.
You’ve got better things to do!
That is why we work with local, independent agents. They are
trained and licensed professionals that work with many insurance
carriers, rather than just one. This means expert and personalized
guidance for you and far less time researching. Find an agent
to get started.
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*Products referenced may not be
approved/available in all states. Limitations and conditions
may apply. Premium will be based on benefits chosen and
policy rates available at time of application.
Disclaimer: This article is not expert advice. The
analysis of coverage is in general terms and is superseded
in all respects by the Insuring Agreements, Endorsements,
Exclusions, Terms and Conditions of the Policy. Some of the
coverage mentioned in this material may not be applicable in
all states or may have to be modified to conform to
applicable state law. Some coverages may have been
eliminated or modified since the publishing of this
material. Discounts may not be available in all states.
Limitations and conditions may apply. Premiums will be based on
benefits chosen. Please check with your local Independent
Auto-Owners Insurance Agent for details."