Medical, auto, and homeowner’s insurance are commonly discussed policies. There are commercials focusing on these types of policies. Even the news media discusses and debates them. A rarely discussed but equally important type of insurance is renters insurance. Just because an individual or a family rents a home doesn’t mean their personal belongings shouldn’t be protected. Any person renting a home, be it an apartment, house, townhouse, mobile, or tent, should know about renters insurance and how it can help protect them.

What is Renters Insurance, exactly?

Renters insurance is a policy that insures an individual’s – and the person’s dependents- belongings in the case of disasters. The disasters may be natural, such as hailstorms or fire, or due to criminal activity, such as vandalism or theft. If such a disaster occurs, the policy can cover the loss of personal property like clothing, electronics, and other personal items.

It is also a policy to provide personal liability protection for the renter and any dependents. This protection provides coverage in the case of a third party being injured or having their property damaged. Also it covers living expenses the renter may incur if damage due to disasters forces the renter to move until repairs to the home are complete. This is known as loss-of-use coverage.

But what is covered?

Basic renters insurance covers the most basic personal property. The renter should discuss his or her exact needs so the policy can be tailored to best suit the renter’s needs. A few types of additional policies include medical payments, water backup, money, and ordinance or law coverage. Medical payments cover any medical costs incurred due to a third party being injured on the rental property. Water backup is coverage in case water backs up through sewers or drains. This is not flood insurance, however. To pay for any physical loss of money, such as bank notes, bullion, and the like, there is money coverage. The ordinance or law policy pays if there is an increase in expense because of current building codes or ordinances. These are just a few of the possible policies to add to renters insurance to tailor it to a renter’s personal needs.

What is the cost?

The cost of renters insurance varies from renter and insurance company. If the renter lives in an area where additional coverage is needed, like those listed above, the cost will increase. With basic renters insurance, the premiums are rarely more than $300 dollars a year, often less.

Are there ways to save money?

To help make renters insurance more affordable, some insurance companies provide ways to save on the cost of the policy. One way is for the renter to combine policies by using the same insurer to cover both automobile insurance as well as renters insurance. Another discount comes from having fire and burglar alarms that are monitored. Also having fire extinguishers and/or a sprinkler system can save money on the policy. Save money by shopping around for the best prices and make sure to inquire about potential discounts for in place safety measures.  

When a renter looks into insuring and protecting his belongings, he should make sure to shop around for the best renters insurance deal. Also the renter needs to be aware of exactly what the basic renters insurance policy of a given company covers. Without this awareness, the renter may not be covered for earthquakes in an earthquake prone area. The renter should also inquire into possible discounts given by the insurance company for features such as monitored burglar alarms and combined insurance policies.