Renters Insurance – What Does it Cover?

• Coverage for additional living expenses. Renter’s insurance includes coverage for “additional living expenses” if your place becomes uninhabitable and you need to find somewhere else to live temporarily. You’d be reimbursed for extra expenses such as the cost to stay in a hotel or rent another apartment.
• Liability protection. You’re covered for damages you, your child, or your pet may cause to others due to your actions or negligence– either at your home or elsewhere. Renters insurance covers attorney’s fees as well as any damages you’re found liable for.
• Medical expenses. If a visitor is injured at your rental property, Renter’s insurance can cover related medical bills up to the policy’s limit. A typical policy includes $1,000 to $5,000 worth of medical coverage, but you can increase your medical expense benefits.
• Extras. You can add coverage for extra things and extra people. Some policies include identity theft coverage. Coverage for expensive items beyond your policy’s limits, like cameras and jewelry, can be added to your basic policy. You can also add other people. While a typical policy automatically covers any resident of your household related by blood, marriage, or adoption, it won’t cover your significant others or roommates. But they may be added as an “additional insured.”

Renter’s insurance is a bargain. Premiums vary from basic student coverage with low limits to coverage with higher limits and liability protection. The average national premium for a typical Renter’s insurance policy is just $326 per year, or about $27 a month.¹ This inexpensive coverage comes with lots of perks, and could save you thousands.

¹Insurance.com 2020 rate analysis (assumes $40,000 in personal property and$100,000 in liability).