When renting a house or apartment, it’s important to remember that the landlord’s insurance policy will only cover structural damage to the home. It doesn’t cover a tenant’s personal property or the tenant’s liability, which means you need a renter’s insurance policy to be fully protected from disaster.
What is Renter’s Insurance?
Renter’s Insurance is a type of insurance policy that helps cover renter’s from damage or disaster while living in their landlord’s house or apartment. We believe everyone renting a property should have a renter’s insurance policy to cover them!
What Does Renter’s Insurance Cover?
Renter’s Insurance has three main components of coverage that help keep you and your personal property covered while renting.
Personal Property Coverage: This coverage protects your personal belongings from unfortunate events and disasters. A great way to keep track of your property is to create a spreadsheet tracking your “categories” like clothing, kitchen appliances, electronics, etc.
Liability Coverage: This coverage gives you legal protections against lawsuits resulting from bodily injury or property damage caused by you, your family, or your pets. It can also include no-fault medical coverage in case someone gets injured on the property while you’re there.
Additional Living Expenses (ALE): If your home is damaged in a disaster that’s covered by your insurance policy, you qualify for additional living expense coverage. Generally, you can expect to be reimbursed the amount equal to your regular living expenses; however, each policy differs.
Do I Need Renter’s Insurance?
While this answer isn’t as black-and-white as Homeowner’s Insurance, we still believe that every renter needs Renter’s Insurance. That said, it is not required in all instances. Some landlords and leases will require it before signing, and others leave it to the renter’s discretion. Nevertheless, if you are interested in protecting yourself and your valuables, it’s a good idea to get Renter’s Insurance.
Can I get Renters Insurance If I Live In A Shared Household?
Yes, you can get renters insurance even if you live in a shared household with roommates. However, we typically recommend that each roommate has their own individual renters insurance policy. This is crucial to ensure proper coverage for personal belongings in case of an incident. Most insurance companies will require separate policies, and landlords can sometimes mandate this coverage as well.
How Should I Estimate My Personal Belongings When It Comes To Renters Insurance?
Even if you don’t think of yourself as someone with many valuable items, take a quick look around your home. You have plenty of personal belongings that matter to you. All those items hold value, and their worth can add up faster than you think. When applying for a renter’s insurance policy, it’s essential to accurately value your personal belongings.
We recommend that you write a list of all of your personal belongings, ranging from your furniture, décor, kitchenware, and electronics to your clothing and shoes. Write out an estimate of how much each item costs. Having a video saved to your phone of each room inside your home can also be helpful if you ever need to file a claim. Remember, selecting higher personal property coverage can increase your premium. However, having sufficient coverage ensures you won’t have to pay substantial out-of-pocket costs if you need to file a claim.
How Much Does Renter’s Insurance Cost?
The cost of your Renter’s Insurance depends on a few things, like the value of your personal property and if you’d like Actual Cash Value or Replacement Cost Coverage for your belongings.
Actual Cash Value: This covers your personal property but assumes that items’ value depreciates over time, which means the value of your reimbursement can decrease.
Replacement Cost Coverage: This type of coverage tends to be more expensive, but it covers the original cost of your personal property instead of its estimated current or depreciated value.
The average cost of Renter’s Insurance is $15-20 per month. Depending on the coverages you select, the value of your personal property, and your deductible, the monthly average cost estimate could be higher or lower. Contact one of our agents today to determine your monthly and annual costs.
Should I Choose A Higher Or Lower Deductible For My Renters’ Insurance?
The ideal deductible depends on your budget. If you can afford to pay a higher monthly or annual premium, opting for a lower deductible could be beneficial when filing a claim. However, selecting a higher deductible can help reduce your monthly or annual premium, making it easier to manage your overall budget. Most renters’ insurance bills aren’t going to break your bank, so don’t let the cost of a renters policy prevent you from obtaining this valuable coverage.
How Can I Get Renter’s Insurance?
If you are looking for Renter’s Insurance and want to talk to one of our Denver insurance agents, reach out today! It’s helpful if you have a general idea of the value of your personal property and when you will need coverage to start. High-value items like jewelry and art will require additional coverage, so be ready to discuss your property and valuables so we can get an accurate estimated quote for you.