How Much Renters Insurance Do You Need?

Most landlords do not require renters insurance, but that does not mean it is not a wise investment. Having insurance can protect your personal belongings in the event of a disaster, such as a fire, theft or vandalism. 

While a landlord’s insurance will cover any property damage to the building, that insurance will not extend to your personal property. Therefore, it is essential to protect yourself and your investments. Having insurance is incredibly affordable and worth taking the time to learn more about.

Coverage Benefits
Renters insurance covers your losses on personal property in the event of a covered disaster, act of theft, or other peril. This type of insurance is the least expensive type, and can offer a number of benefits to renters. 

Coverage typically includes damage from: 

  • Fire
  • Windstorm 
  • Hail
  • Explosion
  • Riots
  • Smoke
  • Vandalism
  • Theft
  • Falling objects 

Accidental discharges of steam or water in heating, cooling, or plumbing systems. 
By reviewing quotes carefully, you will know what to expect from a proposed insurance policy.

What It Does Not Cover
One peril that is almost never included within these insurance plans is property damage that is caused by floods or earthquakes. Should you need flood insurance, you can obtain this type of insurance through a separate policy from the National Flood Insurance Program. You can purchase earthquake insurance separately from a variety of companies. You may want to also consider earthquake or flood insurance depending on where you live. 


Claim and Reimbursement

Should you ever need to file a claim for renters insurance, you can be reimbursed for your loss in one of two ways. 

A “replacement cost” policy provides you with finances for the actual cost of replacing your property. For example, if you lost your TV in a fire, a replacement policy would provide you with the money to purchase a new, similar model/sized TV. 

If you have an “actual cash value” policy, then your insurer will provide you with finances to replace your belongings — at their estimated value at the time of their loss. This type of policy takes depreciation into account. For example, if you lost your TV in that same fire, but your TV was five years old, you will likely receive far less towards replacement. You may not even receive enough to cover a new TV of a similar size and model. 

A replacement cost renters insurance policy will provide you with more protection than an actual cash value policy. However, any insurance is better than no insurance at all. Replacement cost policies typically cost a bit more each month. Therefore, it is important for you to take the time to review these options and choose the level of insurance coverage that you would like to have.

Finding Low Cost Coverage
Cheap renters insurance is easy to find. Most insurance policies are very affordable for renters.

On average, this type of insurance commonly costs around $15 a month. However, your insurance quotes will also be determined by the amount of coverage that you want, your deductible amount, and any extra perils you would like to sign up for.  

Reviewing multiple renters insurance quotes can help you to compare the prices and covered services of multiple insurance agencies. You may also be able to obtain discounts for bundling coverage with an insurer that you already have a different type of policy through, such as your car insurance provider. 


Getting a Quote

To find the best renters insurance, you will need to shop around. Reviewing and comparing multiple quotes is the best way to get more bang for your buck and save money on your overall insurance price. You can find quotes for insurance online or by contacting an insurer directly to speak with an agent over the phone or in person. 

Some of the most highly rated insurance providers include:
  • StateFarm
  • Allstate
  • Progressive
  • American Family Insurance
  • Liberty Mutual
  • Farmers
  • Nationwide
  • Travelers