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Can Renter's Insurance Work for You


Sep 04, 2018

Renters insurance is something that you need if you are going to live as a tenant in someone else's house or apartment. While it may not stop your belongings from being damaged or stolen, it can provide financial protection in the event that something of yours breaks or is taken.

Renters insurance can also be helpful in the event that someone is hurt while a guest in your apartment or home rental. In some cases, you will be liable for anything that happens while you or another person occupies the dwelling. Depending on the scope of a person's injury, the injured victim could incur tens or even hundreds of thousands of dollars in medical bills and other damages. There are landlords who require that you have such a policy prior to renting an apartment or home. This reduces the landlord's liability while also providing you with the peace of mind that comes with being able to replace a computer, car or other valuable item.

Frequently Asked Questions About Renters Insurance

1. How Much Does a Renters Insurance Policy Cost?

A: A renters insurance policy can cost as little as $10 a month for a basic plan. However, the amount that you pay depends on your level of coverage. It could also depend on whether or not you have made a claim on a previous policy with the same insurance provider. Your credit score could also play a role in pricing an insurance policy. Finally, homes or apartments in areas that have high crime rates or a high likelihood of a natural disaster could also cost more.

2. Which Insurance Companies Offer Renters Insurance?

A: Most major insurance companies offer renters insurance policies. Typically, you can go to your favorite insurance company's website or go to an insurance comparison site to learn more about policies that are available in your area. Comparison sites may allow you to do further research into the insurance provider's themselves. Ideally, you will look for companies that have a rating of either an A or a B. This means that the provider has the capital needed to pay out on a claim in a timely manner.

3. What Types of Damage Are Covered?

A: Renters insurance policies typically cover damage done by fire, theft or vandalism. They also cover damage done by water, however, most coverage providers will have language that exempts them from paying for damage caused by a flood. Therefore, you will have to check to see if your landlord has flood insurance or buy a separate policy yourself. You may also be covered under your landlord's homeowners insurance policy whether or not you have renters insurance. This is generally true whether you live in a single-family home, a duplex or in a condo.

4. How Long Does It Take to Get Renters Insurance?

A: Generally speaking, you can get a homeowners insurance policy in a matter of minutes online. If you prefer, it is possible to discuss your policy options with a local agent in his or her office. Typically, the policy becomes effective on the date that you choose assuming that the first month's premium has been paid. If you currently have renters insurance, you should pick an effective date for the new policy that is on or before the date that the existing policy expires.

5. Can I Bundle Renters Insurance Policies With Existing Policies?

A: If you have auto, life or health insurance policies, you may be able to bundle them with your renters insurance coverage. However, this means that you have to use the same company for all of your coverage needs. While this generally isn't a problem, there may be times when different companies offer the best rates for different policies. Typically, the premium that you pay for an insurance bundle is about 10 percent less than the premiums for each policy paid separately.