Renters Insurance: What It Covers, What It Costs, and Why You Need It
Renters insurance is one of the most affordable and valuable types of insurance available. Whether you rent an apartment, condo, or home, renters insurance helps protect your belongings, finances, and lifestyle after unexpected events.
Even if your landlord doesn’t require it, renters insurance is strongly recommended. Here’s why:
What Does Renters Insurance Cover?
Renters insurance typically includes three main types of coverage:
Personal Property Coverage
Renters insurance covers your personal belongings—often referred to as your “stuff.” This includes furniture, electronics, clothing, appliances, and everyday household items.
Most policies offer replacement cost coverage, meaning your items are replaced with new ones rather than their depreciated value.
If you own high-value items such as jewelry, firearms, musical instruments, or tools used for business, you may need to add extra coverage to fully protect them.
Personal Liability Coverage
Liability insurance helps pay for property damage or bodily injury that you may be legally responsible for. Common claims include:
- Slip-and-fall injuries inside your apartment
- Dog bite incidents
- Accidental kitchen fires that damage the unit
Without renters insurance, these costs could come out of pocket. Liability coverage helps protect your savings and future income.
Additional Living Expense (ALE) Coverage
If a covered loss makes your rental unlivable, renters insurance can help pay for temporary housing, meals, and other necessary living expenses while repairs are completed. This is known as Additional Living Expense coverage.
What Perils Does Renters Insurance Cover?
Renters insurance policies cover damage or loss caused by 17 standard named perils, including:
- Fire and smoke
- Theft and vandalism
- Lightning
- Wind and hail
- Water damage from burst or leaking pipes
Standard renters insurance does not cover flood or earthquake damage. These require separate policies. Always review your policy for full coverage details and exclusions.
How Much Does Renters Insurance Cost?
Renters insurance typically costs between $10 and $50 per month, depending on coverage limits and optional add-ons.
If you bundle renters insurance with your auto insurance, many insurers offer discounts that can offset much of the monthly cost.
Is Renters Insurance Required?
Most landlords require renters insurance, but even when it’s optional, it’s highly recommended. For a relatively low cost, renters insurance provides valuable protection for your belongings, liability exposure, and temporary living expenses.
Get a Renters Insurance Quote Today
Renters insurance offers peace of mind at a price most renters can afford. If you rent, this coverage is one of the smartest financial decisions you can make.
For more information or to get a renters insurance quote, contact Anderson Insurance today.
801-262-1551 – www.anderson.insure
