Many renters skip renter’s insurance, assuming their landlord’s policy covers them. In reality, a landlord’s insurance only covers the building structure, not your personal belongings or liability.
Renter’s insurance typically covers three areas: personal property, liability, and additional living expenses. If your apartment is burglarized, damaged by fire, or affected by certain natural disasters, your policy replaces your belongings up to the coverage limit.
The liability component protects you if someone is injured in your apartment or if you accidentally damage someone else’s property. This coverage can save you from devastating out-of-pocket expenses in a lawsuit.
Additional living expenses coverage pays for temporary housing and related costs if your apartment becomes uninhabitable due to a covered event. This can include hotel stays, restaurant meals, and other necessary expenses.
The cost of renter’s insurance is surprisingly affordable. Most policies range from 15 to 30 dollars per month depending on your location, coverage amount, and deductible. Many insurers offer discounts for bundling with auto insurance.
When selecting coverage, create a home inventory of your belongings with estimated values. This helps you choose an appropriate coverage limit and simplifies the claims process if you ever need to file one.
Note that standard renter’s insurance does not cover floods or earthquakes. If you live in an area prone to these events, consider adding separate coverage.