The Importance Of Renters Insurance And Why You Must Have It

Feb 13, 2023 | Personal Insurance

Frequently, tenants think everything’s covered once they settle in their rented home. They forget the importance of renters insurance. They forgo purchasing insurance for their rented apartment or rental home. Renters often think it is not essential. There’s a misconception that it is expensive and they start to ignore the importance it would give them in the future.

Renters insurance is an inexpensive type of insurance and very easy to avail. It protects you from unexpected events that go out of control. Events like fire and theft can cause extreme damage and loss to your property. Let’s discuss renters’ insurance for a better understanding of what it is and the importance of renters insurance.

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What is Renter’s Insurance?

Renter’s insurance is a.k.a. tenant’s insurance. It pertains to the insurance policy that protects the tenant from specific perils that might affect their personal property.

The owner of the home you are renting is liable for the whole building or property. You, as the renter, are responsible for your personal belongings. The owner would not be accountable for the loss and damage to them.

What Does It Cover?

Renter’s Insurance aims to PROTECT you. In the event of a loss due to theft or fire, the renter’s insurance will replace the damages. Your personal belongings, even if the loss happened outside your rented home. Its coverage types are:

Personal property coverage.

This covers your personal belongings by replacing them and the repair cost of your valued stuff up to your coverage limit.

Liability coverage

This covers the damages to others’ property or injuries sustained by someone inside your apartment.

Additional living expenses.

This would cover your additional living costs if you happened to stay outside of your rented home due to a disaster or unforeseen events.

You may need to rent a hotel if your apartment gets destroyed by fire or another disaster. Your renter’s insurance will pay for the additional costs to maintain your standard of living.

Security appreciates your tenant knocking on your door once a month because they are not an apartment fire.
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What Are The Things To Consider?

The amount of coverage

Buying renter’s insurance covers determined possessions. You’d need different coverage, which you see fit for what you need. More coverage means the higher price of the policy you will purchase.


This would play a big part in deciding the cost of your policy. Your insurance kicks in once you have shed the money out of your pocket.

Actual cash value or replacement cost

With actual cash value, lost or damaged possession would be paid the amount at its present cost. Typically, an item gets depreciated as the years pass.

Replacement cost replaces the exact lost item regardless of the price at the time of loss. This would be a better option compared to the actual cash value. It won’t depreciate your property’s value and would reimburse your stuff’s full cost.


An area prone to theft and other disasters incurs a rise in insurance costs. This would indicate frequent claims, especially if the place has previous claim reports because of these causes. Expect a higher price on your policy.

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Why Is Renter’s Insurance Required?

Landlords Require Renters Insurance

If you should ask if it’s mandatory, the answer is no. But landlords have the legal right to require you to purchase renter’s insurance as part of your lease agreement. The importance of renters insurance and the reasons behind this are sensible, as it only protects the owner’s business. It may include protection against lawsuits in the event of the personal property loss of a tenant.

The Property Owner Also Wants To Ensure You Are Well-covered To Protect Your Investment.

An event of loss or damage might push you to find another place if you don’t have the means to shoulder the expenses. The owner then would have to find another tenant. If you are insured, you will likely prolong your stay in their apartment once a break-in or incident happens.

Aside from the advantage, it would give them, purchasing renter’s insurance for your good is best. It wouldn’t cost that big to buy one. You would benefit more from it since it protects your welfare and valuable possessions.

Why Do You Need It?

The need to be protected is the number one reason why you must have renter’s insurance. Other reasons are as follows:

Renter’s insurance protects at a very affordable price. It only costs an average of $16 per month or $187 per year and will depend on some factors. It could be the type of coverage, the deductible amount, your location, and how much is your needed coverage. Every state has a different average renter’s insurance cost.

It protects your personal belongings from losses caused by your covered perils. It includes items like computers, furniture, clothes, and electric gadgets. Some of the perils that may be included in a renter’s insurance policy are:

  • Fire
  • Volcanic eruption
  • Riot or commotion
  • Damage from smoke
  • Vandalism
  • Theft
  • Water damage
  • Guest Injuries
  • Damage caused by vehicles
  • Windstorm

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The Importance of Renters Insurance to You as a Renter

Most landlords require their tenants to purchase renter’s insurance. Presenting proof of your policy means you are cooperative and can handle future negotiations with them. It is also one way of reducing their responsibility to you once a problem arises.

Its liability coverage protects you from damages you might cause against other people and their property. It also covers injuries and medical bills for your guests in your rented home. The insurer shoulders legal expenses up to your limit.

It covers additional expenses to maintain your usual standard of living. Some perils happen unexpectedly, and it affects your way of living. You might need to rent a hotel if your apartment gets destroyed by fire or another disaster. Your renter’s insurance will pay for the additional costs, including food.

Your personal belongings are also covered while you travel. Even if you have your stuff with you or inside your car on a trip, and they get stolen, they are still covered. It doesn’t matter where you are in the world because your possessions are protected from loss by your insurance.

Renting a home has been worry-free since the renter’s insurance kicked in. It is an affordable type of insurance that would save you significant time from troubles. All of these make the importance of renters insurance evident for anyone renting.

With all the advantages discussed above, wouldn’t it be safe to acquire one now? Please do not wait until it is too late. Get renter’s insurance today. Contact us at (877) 658-2472 today!

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