What renters insurance covers
- Personal property: your furniture, clothes, electronics and other belongings
- Personal liability: if someone is hurt in your home or you accidentally damage someone else's property
- Medical payments to others for minor injuries
- Additional living expenses if a covered loss makes your home unlivable
Why your landlord's policy isn't enough
Your landlord insures the building and their own liability. If a fire, a burst pipe or a break-in ruins your belongings, their policy generally won't pay to replace them. Renters insurance fills that gap for you.
Liability matters too. If a guest slips in your kitchen or water from your overflowing tub damages the unit below, you could be responsible. Renters insurance can pay for that, plus legal costs if you are sued. Without it, those bills come out of your own pocket.
What it usually doesn't cover
- Flooding from rising water, which needs a separate policy
- Earthquakes, unless added
- Your car, which is auto insurance
- Damage from pests or wear
- Valuables above special limits, unless scheduled
What it costs
Renters policies are typically among the least expensive types of insurance. Your price depends on where you live, how much coverage you choose and your deductible. Bundling renters with auto insurance can lower it further, and in some cases makes the pair cost less than auto alone.
How much coverage to choose
- Add up what it would cost to replace your belongings
- Choose a liability limit that protects your savings; many people start at $100,000 or more
- Pick replacement cost coverage if it is available
- Schedule valuable items like jewelry or a camera
Replacement cost vs. actual cash value
Actual cash value pays what your belongings are worth today, after depreciation. Replacement cost pays what it costs to buy them new. Replacement cost usually costs a little more but pays far more after a loss. For example, a five-year-old laptop might be worth very little on an actual cash value basis, but replacement cost would help you buy a comparable new one.
Getting a renters quote
Some leases require renters insurance, and your landlord may ask to be listed as an interested party. CapCenter's licensed insurance agents can quote renters insurance with multiple carriers and help you bundle it with auto. Anyone can get a quote.
