If You’re Renting, Make Sure You Have Renter’s Insurance

Nowadays, insurance is becoming an essential rather than just a good idea. This fact can be tested and tested again, but having car insurance, life insurance, home insurance… is just plainly, a great idea. But, if you don’t own your own house, do you have less of a need to get renter’s insurance. The answer is No! You don’t have less of a need at all, you really should have insurance even if you are only renting.

Some of the excuses I hear about having renter’s insurance is the cost. They feel that it is too expensive for this type of insurance. The next most common excuse is that it is unnecessary.  Both of these are valid questions, but hopefully one’s that can be easily answered.

Don’t assume that the person who is the owner of the property is the one with the insurance. They may have it, but if it is damaged, you will end up paying the price.

The price of Renter’s Insurance

This will ultimately depend on what you are insuring. A small apartment with little overall value, will be much lower than a huge house with jewelry and other items.

But remember, just like any other types of insurance, there are choices that you can make. For example, the amount of coverage and the deductible are things that you can change.

Remember, you are covering your own items in case of an emergency.  This is coverage on what you already own.  Therefore, is it too expensive to cover your own valuables?  That flat screen television, your bed, your personal items, and especially your clothes. The price of Renter’s insurance should really illustrate, “The Value of Renter’s Insurance.”

Replacement Costs or Actual Cash Value

Most policies cover either the overall replacement cost or the Actual Cash Value or ACV.  ACV policies are more expensive but worth it if you have expensive items that need to be replaced.

Remember, if you bought a television five years ago for $1,000.  If it was damaged because of something inside your apartment, you won’t get $1,000 for that television. It will be a prorated price of a television that is five years old.

Don’t forget about Liability Coverage

This is something that many renters are not aware of. This is a policy, different from renter’s insurance that protects you is someone sues you because of an accident that happened in your residence. This may not apply to everyone, but keep this in mind if you are having business or a lot of foot traffic in and out of your residence.  This probably isn’t for everyone, but keep it in mind.

Imagine throwing a smashing party where your friend jumps on a glass table, breaks it, and cuts their wrist. Or another friend trips down the stairs and breaks their leg.  These types of incidents may turn into nothing, but lawsuits have been move forward on far less.

What is your Insurance covering?

1.)    Theft of property

–          The items that are stolen will be covered under your insurance.
–          More than anything, this is a peace of mind that protects you against a hidden danger
–          Theft can lead to serious fear, financial ruin, and damage to your home or your property.

2.)    Fire Damage

–          An unexpected fire could be more damaging than a theft
–          Equally loss is your possessions and a good night sleep.

3.)    Damage of the property from an accident

–          If a person is injured on your property – Liability Coverage takes care of that
–          If property is damaged, that falls under Renter’s insurance.
–          If a car smashes through the front door, you would be covered if they didn’t have insurance.

4.)    If damaged, insurance helps cover the cost of another living arrangement

–          This could cover hotel costs
–          This could also cover moving and fuel
–          You are covered until you can go back to your home

5.)    If objects are lost while traveling, this can be covered.

–          Losing a suitcase while traveling is a horrible thing
–          Having renter’s insurance helps and covers you.
–          It could even cover an engagement ring that was lost.
–          You’ll need to have it appraised by the insurance company


There is so much value in Renter’s insurance.  Don’t be caught without  it.  For a small price per month, you can protect against a life changing disaster and still end up feeling okay about it.