Renters Insurance 101: What It Covers and Why You Need It
What renters insurance typically covers and how to choose a policy.
Renters insurance is one of the most affordable ways to protect yourself as a renter, yet many people skip it. Here is what renters insurance typically covers, why it matters and how to get started.
What is renters insurance?
Renters insurance is a policy that protects your personal belongings and provides liability coverage while you rent. Your landlord's insurance generally covers the building itself, not your furniture, electronics, clothing or other items inside your apartment.
What renters insurance usually covers
Coverage varies by policy, but most renters insurance includes three main parts:
1. Personal property
This helps pay to repair or replace your belongings if they are damaged or stolen due to covered events, which often include fire, smoke, theft, vandalism and certain types of water damage. Coverage can apply to items at home and sometimes even items outside your home, like a laptop stolen from your car.
2. Liability
If someone is injured in your apartment or you accidentally damage someone else's property, liability coverage can help with costs, including legal fees in some cases.
3. Additional living expenses
If your apartment becomes unlivable because of a covered event, this can help pay for temporary housing, meals and other costs while repairs are made.
What it usually doesn't cover
- Floods typically require separate flood insurance.
- Earthquakes are usually excluded.
- High-value items like jewelry or collectibles may need extra coverage.
- Roommates' belongings are usually not covered unless they are named on your policy.
Always read your policy carefully and ask your insurance agent about anything you are unsure of.
Why it's worth it
- It is affordable. Renters insurance is often inexpensive compared to the cost of replacing everything you own.
- It protects more than you think. Add up the cost of your furniture, clothes, electronics and kitchen items. It adds up fast.
- It may be required. Many leases require renters insurance, so check your lease terms.
- Peace of mind. If something goes wrong, you won't face the full cost alone.
Common myths about renters insurance
- “My landlord's insurance covers my stuff.” Generally, it does not. It covers the building.
- “I don't own enough to insure.” Clothes, a bed, a TV, a laptop and kitchen items can add up to thousands of dollars.
- “It's complicated to get.” Many insurers let you get a quote and buy a policy online in minutes.
What to do if you need to file a claim
If something happens, stay safe first. Then document the damage with photos, report theft to the police if applicable, notify your property manager and contact your insurance company as soon as possible. Keeping an inventory ahead of time makes this process much easier.
How to choose a policy
- Take inventory. List your belongings and estimate their value. Photos or a quick video walkthrough help.
- Choose replacement cost vs. actual cash value. Replacement cost coverage pays to replace items with new ones, while actual cash value factors in depreciation.
- Pick your deductible. A higher deductible usually means a lower premium.
- Compare quotes. Check with a few providers, and ask about bundling with auto insurance for a discount.
This article is general information, not insurance advice. Talk to a licensed insurance agent about your specific needs.
Moving into a new apartment?
Ask our leasing team about renters insurance requirements when you apply. Browse available apartments or contact Lakeshore Management with any questions.
