4 Things to Know About Renters Insurance
Your landlord should have your space covered – but here’s how to protect your belongings, your guests and yourself.
Renter-occupied units account for nearly one-third of the total housing options available in the United States;1 however, only about 40 percent of tenants have renters insurance compared to 95 percent of property owners with home/condo insurance.2 If you are living in a rental unit, here are some benefits of having renters insurance.
1. It Will Cover Losses to Your Personal Belongings
In the wake of fire, theft, or smoke and water damage, renters insurance will help provide the money you need to replace personal possessions like clothes, electronics and furniture.
2. It Protects Your Personal Belongings Wherever They Are
One of the biggest surprises about renters insurance is that your personal possessions can be covered even when they are not in your home. Many policies include coverage for your belongings when they are in your car, in a hotel room or somewhere else.
3. It Will Cover Your Living Costs After a Disaster
If your home becomes uninhabitable due to an insured loss, renters insurance protects you with additional living expense (ALE) coverage to help you maintain your usual lifestyle. ALE coverage provides you with compensation for the costs of living elsewhere that go beyond normal expenses, such as a hotel or temporary housing, restaurant meals and laundromats. It will also cover any increased mileage or transportation costs due to your new, temporary location.
4. It Offers Liability Coverage
Renters insurance doesn’t just protect your things – it also protects you.3 If a guest is injured in your apartment, it will cover some or all of their medical expenses. Furthermore, if you or a relative who resides with you accidentally injures someone else at the rented property, renters insurance can assist in covering legal expenses. Lastly, if you or a member of your family damages someone else’s property, renters insurance can pay to repair it.
There are different levels of coverage, so taking inventory of what you own and how much your belongings are worth is a great way to get started.
- Quarterly Residential Vacancies and Homeownership, First Quarter 2017, U.S. Census Bureau, 2017.
- Renters Insurance, Insurance Information Institute, 2016.
- Coverage may vary by state and policy.