Renters insurance is similar to homeowner insurance but it is typically used to cover the contents of your home, rather than the structure of your home.
To begin with, we all deserve a nice place to live, but renting can be a struggle. Thankfully, there are resources that can help which include websites or speaking with an agent to inquire about the coverage. By the way, this insurance is very affordable and is well worth the cost of having peace of mind.
What is renters insurance?
Renters insurance is a type of insurance that covers your personal belongings from loss, damage, or theft. It may help cover the costs associated with replacing your belongings, such as your TV, laptop, or stereo.
This insurance also pays for the cost of making repairs to your home or replacing damaged belongings, such as broken windows.
More so, your insurance policy usually covers you for losses caused by fire and vandalism. But, it also covers you for damage you inflict on someone else’s property.
The majority of the time, this coverage pay for damages that were caused by natural disasters like earthquakes, flooding, or accidental damages such as fire, falling objects, or vandalism and liability protection if someone gets injured on your property.
It is also designed to protect your personal possessions and liability in the event that someone is injured while in your home. Basically, your landlord’s insurance typically only covers structural damage to the premises.
Types of renters insurance
ultimately, there are two major types of renters insurance:
Actual Cash Value (ACV)
ACV is the most common type. Moreover, some workplaces even require employees to have it.
What renters insurance covers
Majorly, its policies usually cover personal property, liability, and additional living expenses.
Personal property coverage protects you from the financial costs of repairing or replacing your belongings like electronics and furniture.
Liability coverage protects you from the financial cost of repairing someone’s property that you accidentally damaged. Also, this coverage will take care of the medical bills of anyone that got injured on your property.
Additional living expenses like hotel bills from moving out of the damaged property. This will help you to settle in a hotel while you wait for the company to repair your house. Additionally, it pays for your meals too while away at the hotel.
Who needs renters insurance?
Individuals who rent homes, apartments, or condominiums need renters insurance. Renters insurance protects renters from financial liability in case of fire or theft. This insurance also protects individuals against medical costs and damages to personal items.
It is an optional type of insurance that renters can purchase to financially protect themselves. This type of insurance is designed to protect renters from damages and liability that may happen to their rented home. The insurance for renters is different from homeowners insurance. You can purchase renters insurance separately and it is not included automatically.
How necessary is renters insurance?
As it stands, if you’re spending more on rent than you’re saving, buying renters insurance becomes necessary. For example, you may be paying $600 extra per month for insurance on $1,500 worth of rent.
It may not make sense for younger people, those who rent a place for a short time, or those who rent a place close to where they already live. However, it may make sense if there are reasons to be more worried about theft or fire in your building, for example.
Who to meet
Now, the 2023 National Association of Insurance Commissioners (NAIC) study shows that in the experiment carried out with Insurance Shopping and Purchasing, the study discovered that 41% of consumers said they did not feel knowledgeable about how to evaluate homeowners insurance options. This means that consumers may turn to a friend or family member for advice.
However, 79% of consumers said they trusted their agent’s recommendation based on experience. This proves that consumers should select a licensed agent they trust in order to best protect their families and property.
Top renters insurance companies in the U.S
There are dozens of insurance companies in America that serves different niche. Among the most well-known insurance companies in America are:
- State Farm
- Lemonade $154 per year
- Farmers Insurance Group
- Nationwide Mutual Insurance $151
- Erie Insurance $182 per year
- Chubb Limited $166
- United Services Automobile Association (USAA) $140 per year
- Liberty Mutual.
- Progressive $220
- Travelers companies
- Auto-Owners Insurance
- COUNTRY Financial
- Amica Mutual Insurance
- The Hartford
- American Family Insurance