For many, getting renters insurance is only a consideration if the property requires it. Even then, renters may not fully understand just what their insurance policy covers until the time comes when they need it. For those who go without, this can come at a painful cost.

For any renter—regardless of whether or not your landlord requires it—understanding renters insurance can help you protect your finances and possessions if an emergency occurs.

Here, we’ve compiled a list of renters insurance frequently asked questions to give you the basics.

Q: What is renters insurance for?

A: Renters insurance provides compensation protection in the event that your possessions are damaged or stolen under specific conditions while you are living in a rental property. It is the renter’s version of homeowners insurance, meant to protect your assets through monthly premiums and deductibles. But there’s more to renters insurance as well.

Renters insurance also provides liability protections. This means if a visitor is accidentally injured in your home, you will be kept financially safe from lawsuits. While these scenarios may be unlikely, spending a few dollars a month keeps potential financial problems at bay for any renter.

In addition to these protections, renters insurance provides the cost of secondary accommodations in the event that fire, smoke, or water damage keeps you from living in your rental. This can mitigate the severity of any disaster, helping you recover in safety and comfort.

Q: What events will renters insurance cover?

A: Renters insurance policies will differ in specific coverages. These are typically dictated by your location and the type of policy you are seeking out. Each policy will require that a deductible is met before the insurance company pays the rest, a sum that will be determined by the amount you pay as a monthly premium.  

Typically, renters insurance covers damage from events like:

• Fire

• Storms

• Collisions with home

• Theft

• Natural disasters

• Water leakage

• Electrical problems

• Mechanical failures

• Riots

The specifics of every situation will come down to individual policy. Thoroughly examine your options to know exactly your policy will cover.

Q: Who needs renters insurance?

A: Anyone occupying a rental property should seriously consider acquiring renters insurance. Monthly premiums typically range between $15 and $25, meaning they are about as affordable as an HBO Max subscription. That amount can ensure that the whole family is protected under the same plan.

While some policies do allow non-family members to be added, to avoid claim and records issues, it is highly recommended that every roommate acquires their own renters insurance policy. Additionally, renters with pets should ensure that they are financially protected from damages their animal might incur on another person or property.

Q: How do I estimate the value of my possessions?

A: In determining your policy, you will need to provide an accurate estimation of the value of your possessions. Achieving this with any degree of accuracy can be difficult, but there are tools available to help. Using a spreadsheet or even an inventory application on your mobile phone will assist you in listing out your items and their estimated values. The more you include, the more protection you will have from unfortunate events. 

Q: What kind of insurance plan should I look for?

A: Finding the right renters insurance plan will take some research. You can find and compare policies online, checking out what’s covered and what’s not to better determine your best fit. Have pets? Live in a flood area? Check the details of policies that catch your eye to ensure an important point of coverage isn’t left out, or seek out supplemental policies if needed.

Then, check out the reviews and ratings online for specific insurance companies and policies. Understanding how others have or haven’t been served by their policy helps you know what to expect in the event of a disaster. This can alleviate the stress of nasty surprises at a time when you least need them. 

No renters insurance policy is made precisely equal. However, understanding the common coverage events and utility of renters insurance will help you know the value of acquiring such a policy for yourself. 

For more information on rental property management and real estate investment, contact 208.properties or find us on social media.