What Is Renters Insurance?
Commercial insurance is a form of insurance designed specifically to meet the needs of businesses. Tenants cannot rely on home insurance, which covers the building but cannot cover your belongings. Without tenant insurance, you’ll have to pay to replace the entire room if the building is hit by a fire, hurricane or other disaster. Tenant insurance covers more than just personal belongings, but includes liability insurance and additional living expenses. Additionally, guests may be awarded medical expenses for minor injuries (up to $1,000, for example), regardless of who is responsible for the injury. Renters often focus on insuring their belongings.
Below are the main types of coverage found in a standard renters insurance policy.
|COMPANY||FORBES ADVISOR RATING||AVERAGE RENTERS INSURANCE COST||COMPLAINT LEVEL||LEARN MORE|
|Allstate||$106 a year||Very low||Learn More|
|Nationwide||$126 a year||Very low||Learn More|
|State Farm||5.0 ||$122 a year||Very low||Learn More|
|Country Financial||4.5 ||$150 a year||Very low||Learn More|
|Westfield||4.5 ||$159 a year||Very low||View More|
|Chubb||4.0 ||$114 a year||Very low||Learn More|
|American Family||4.0 ||$152 a year||Very low||Learn More|
|Farmers||3.0 ||$166 a year||Very low||Learn More|
|USAA||2.0 ||$193 a year||Very low||Learn More|
|Progressive||1.5 ||$217 a year||Low||Learn More|
|Erie||1.0 ||$204 a year||Very low||Learn More|
|Travelers||1.0 ||$363 a year||Very low||Learn More|
Personal property coverage
This type of insurance covers your personal belongings—your furniture, jewelry, rugs, clothing, pots and pans, electronics, and more. It covers damage from issues such as theft, fire, smoke, vandalism, falling objects, explosions and the weight of ice and snow.
You will choose a policy limit for personal property, which is the maximum amount your insurance company will pay if your personal items are damaged or stolen. For example, you can choose $30,000 of coverage.
You can usually choose between replacement cost coverage and actual cash value (ACV). Replacement cost coverage is more expensive, but it provides better coverage because it doesn’t take depreciation into account. For example, if you purchased a laptop three years ago for $2,000 and now Pay for a stolen replacement replacement laptop at today’s retail price (less deductible). ACV will only pay the depreciated value of the laptop.
Some programs have “special limits” or sub-limits for certain types of losses. For example, an insurance policy might limit coverage for stolen jewelry to $1,000. That’s not enough for a $5,000 ring, for example.
If you need more insurance on high-value items, you can “arrange” them so that you get paid what they are worth if they are stolen.
Many people think that renters insurance only covers coverage for belongings such as furniture. But renters insurance also gives you important liability protection. Liability coverage comes into effect when you are being sued for injury to others or damage to property. This coverage also pays for your legal defense.
So if someone falls in your apartment — or your dog bites someone — and you get sued, you can take advantage of your renters liability insurance.
The typical amount of liability coverage in a renters insurance policy is $100,000, but with the best renters insurance, you can increase that amount.
Medical payments to others
Medical expense coverage is often included in a renter’s insurance policy, and it pays for smaller medical bills regardless of who is at fault. For example, if a guest slips and falls in your home and suffers a minor injury, you can be covered regardless of the fault. Covered amounts are small, usually from 1,000.
Additional living expenses
Additional living expenses insurance can cover hotel bills, restaurant meals and other extras such as pet boarding if you are unable to live in your apartment due to issues covered by the policy. Remember to save all receipts in order to file a claim.
This coverage is also known as “Loss of Use”.