What Does Renters Insurance Actually Cover?
Renters insurance may be the most underrated yet essential types of insurance coverage available. Many renters mistakenly assume their landlord’s insurance policy protects their belongings, but this is not the case. Your landlord’s insurance typically only covers the physical structure of the building, leaving tenants responsible for their personal property and liability.
So, what does renters insurance actually cover? Let’s break it down.
Personal Property Coverage
One of the primary benefits of renters insurance is protection for your personal belongings. This includes items like furniture, electronics, clothing and household items. For example, if a kitchen fire damages your appliances or a burglar steals your laptop, renters insurance can help cover the cost of replacing those items.
Important Tip: Policies often have coverage limits for high-value items like jewelry or collectibles. You may need to endorse your renters insurance policy for these types of items.
Liability Protection
Renters insurance also includes liability coverage, which protects you if you’re found responsible for injuries or property damage to others. For example, if a guest slips and falls in your apartment, liability coverage can help pay their medical bills; OR If your child accidentally breaks a neighbor’s window, your policy may cover the repair costs.
Additional Living Expenses
If your rental unit becomes uninhabitable due to a covered event, renters insurance can help cover additional living expenses. This might include hotel stays, restaurant meals, or a temporary rental. For example, if a fire forces you out of your apartment, your additional living expenses coverage ensures you’re not paying out of pocket for temporary accommodations.
Medical Payments to Others
Most renters insurance policies include a small amount of coverage for medical payments to others, typically ranging from $1,000 to $5,000. This can help cover minor medical expenses if someone is injured in your rental, regardless of who is at fault.
What Renters Insurance Does Not Cover
While renters insurance is comprehensive, there are some exclusions, such as:
Flood damage: A separate flood insurance policy is required.
Earthquake damage: Coverage typically requires an add-on policy.
Damage caused by pests like rodents or bedbugs.
Your roommate’s belongings: Each tenant should have their own policy.
How Much Does Renters Insurance Cost?
Renters insurance is surprisingly affordable, with the average policy costing between $15 and $20 per month. Factors that influence the cost include your location, the amount of coverage you select and your deductible.
Why Renters Insurance is Worth It
For a small monthly premium, renters insurance provides significant financial protection and peace of mind. Whether it’s replacing stolen property or covering liability costs, having a policy ensures you’re not left to shoulder unexpected expenses alone.
Still have questions about renters insurance? Contact Bragg Insurance Agency today for personalized advice and a free quote! Phone or text us at 317-758-5828 or email us at info@bragginsurance.com
