Renters Insurance: What It Is and Why You Need It

This informational blog is not legal advice. Always consult a qualified DUI attorney to assist with legal questions. If you have immediate questions about SR-22 insurance, call a Breathe Easy licensed insurance agent at (833) 786-0237.

Whether it’s coverage from theft and damage, or just some peace of mind, renters insurance can be an invaluable investment.

Imagine your next-door neighbor has a cooking mishap and burns down their kitchen, taking out your blender and toaster oven in its wake. Or your upstairs neighbor has a dishwasher leak that seeps through the floor and damages your collection of rare books. Then there’s every renter’s nemesis: a break-in where a thief runs off with your computer and other valuables.

You might think you have no recourse—that you’ll have to cover the expenses of replacing your damaged kitchen items, or fight your neighbor over replacing your book collection, or that your computer is just gone forever. But good news: renters insurance can help cover these incidents, and more.

You just have to take advantage of this valuable investment. According to the National Apartment Association, only 55% of renters across the U.S. have renters insurance.

What is Renters Insurance?

Renters insurance is an affordable, reliable way to replace your belongings after a covered loss and even provide coverage if you’re responsible for causing any damage. With renters insurance, you might save thousands in out-of-pocket expenses. But what else does renters insurance cover? How expensive is it? And what if you have roommates?

What Your Landlord’s Insurance Covers, and What It Doesn’t

A common misconception is your landlord’s insurance will cover everything in your home, but that’s not the case: their insurance protects the building, not your property or liability. If damage happens to your apartment building, the landlord’s insurance will cover it. But if a pipe bursts in a wall and destroys your wardrobe, their insurance may cover the burst pipe, but it won’t pay to replace your clothes.

Plus, if an injury happens to someone in your place or you start a grease fire while cooking and it leaves irreparable damage behind, your landlord’s insurance won’t cover that.

You’ll need your own renters insurance – sometimes referred to as apartment insurance - to help with coverage, unless you want to cover those costs yourself.

What Renters Insurance Covers

There are three main categories of renters insurance coverage: personal property, liability, and additional living expenses. Let’s look at each one:

• Personal Property: Covered losses can include damage to or theft of your belongings. Depending on your particular claim, your items could be repaired or replaced.
• Liability Coverage: This coverage relates to injuries that can occur on your property and can also cover damage you negligently cause to your unit or apartment community.
• Additional Living Expenses: If your rental is damaged to the point where you need to live somewhere else while it’s being repaired, your claim may pay for another rental and other associated expenses.

Be aware of variations in coverage, such as limits and exclusions. For example, certain types of water damage and forced-entry theft may be covered, but there could be complications if damage is incurred through a neighbor’s negligence.

It’s important to review your options with an agent and understand the full terms of your policy.

Acts of God

Acts of God are basically natural disasters that can’t be prevented. Think of trees that fall and damage a roof, wind that rips the siding off a building, or floods resulting from hurricanes. Renters insurance doesn’t cover all natural disasters; some events like earthquakes may require their own coverage.

Check with your agent to make sure you have the right coverage, especially if you live somewhere with severe weather issues.

Theft or Vandalism

You’d expect renters insurance to cover theft or vandalism of your belongings if they were taken or damaged from your home. But did you know it can also cover items taken from your car, or while you’re moving, or items in your storage unit?

You’ll likely have to pay a deductible, but your agent can fill you in on your full coverage details and whether there are coverage limits for this category.

Personal Liability

Renters insurance can also cover legal fees, medical expenses, court costs, settlement costs, and more if someone is accidentally injured on your property, or if you unintentionally damage the property you’re renting. It could also cover damage to someone else’s property under certain circumstances.

Personal liability also extends to your pets. If something unintentional happens, like your dog biting the mailman, or unintentionally tripping an old lady who then needs medical attention, renters insurance can help cover the costs associated with such pet-related mishaps.

Make sure you understand the parameters of your coverage, including the terms, applicable deductibles, coverage types and limits; and remember the more coverage you want, the more you’ll pay for your monthly premium.

How Renters Insurance Works

When you sign up for renters insurance, you’ll pay a premium dependent on how much you wish to insure. Premiums may be paid annually, semi-annually, quarterly, or monthly. You may want to take stock of your belongings, so you can have a solid estimate of how much everything is worth to obtain enough coverage. Your rate will be based on the amount of coverage you purchase. Then you’ll have access to coverage when you need it after you file a claim that details your loss.

You don’t always realize how much you’ve invested in your furniture, electronics, and other belongings until you suffer a loss, and it can be hard to believe anything bad could ever happen to them. But even a small mishap could cost you thousands in replacement costs.

You can’t predict the range of mishaps that could affect your home, and even the best security system can’t guarantee against theft. But with renters insurance, you can invest in some peace of mind that if any of those things happen, you’ll be covered.

What is Excluded from Renters Insurance?

While renters insurance covers a lot, it doesn’t cover everything. In some instances, like with certain valuable collectibles or jewelry, you may have to purchase a separate policy to have additional coverage.

Here are some additional items not typically covered by renters insurance:

• Power failures
• Neglect
• Intentional acts

There are some instances where you might not be able to get coverage at all. Let’s look at some exclusions that renters insurance doesn’t cover.

Certain Natural Disasters

Renters insurance typically doesn’t cover damage from certain natural disasters. However, that doesn’t mean you can’t get coverage for these phenomena, you’ll just have to purchase separate policies.

Here is a quick list of perils that may be protected against through a separate policy or through additional coverage:

• Flood
• Sewer back-up
• Earthquakes

If you live somewhere prone to flooding or earthquakes, you can ask your insurance agent for information on additional coverage when you’re setting up your renters insurance.

The Building Itself

You don’t have to worry about your policy covering the building, that falls under the landlord’s insurance. Your policy covers your personal belongings, while your landlord’s policy covers the walls, roof, and floors.

Roommates

Your roommates will need their own renters policies to cover their own belongings. It’s possible for you to add them to your policy, but that can get complicated in the event of filing a claim for a loss. It’s easier and less complicated for you and your roommates to have separate coverage.

Pests

Worried about bed bugs? Finding evidence of a termite infestation? Mice helping themselves to everything in your kitchen? These infestations don’t usually fall under standard renters insurance policies, but they’re not exactly guaranteed to be your landlord’s responsibility either.

Landlords are bound by the implied warranty of habitability, which requires them to keep homes free from health hazards like insects, rodents, and other pests. However, there are limitations and exceptions to what’s covered under this duty.

Be sure to check your lease for pest clauses and understand what your responsibility might be. If an outbreak does occur, notify your landlord in writing.

Make sure you discuss what your renters insurance policy covers, and what it excludes, with your Breathe Easy licensed insurance agent.

Am I Required to Have Renters Insurance?

As of the date of publication, no state law requires tenants to purchase rental insurance. However, the law in your state may allow landlords or rental companies to include rental insurance requirements as part of their property rental lease agreements.

Here are a couple examples:

• Oregon allows landlords to require tenant liability coverage (often up to around $100,000), but only if the landlord also carries their own liability coverage and can show proof.
• Virginia lets landlords require renters or “damage” insurance and even arrange coverage themselves and charge tenants, but it caps how much they can collect upfront when combined with security deposits.

Select housing programs or subsidized rentals may also have rental insurance requirements, but that can depend on city ordinances.

While you’re apartment hunting, make sure you ask your potential landlord if they have any rental insurance expectations.

Who Doesn’t Need Renters Insurance

If you have a spouse or any dependents, you won’t need to take out a separate renters insurance policy to cover their belongings. They’ll be covered under your policy.

Make sure to thoroughly catalogue everyone's valuables so you get the right amount of coverage.

Breathe Easy Can Get You Set Up with a New Policy

Hunting for renters insurance doesn’t need to be a grind. Breathe Easy has partnered with ePremium to find the right coverage for the right price for renters living in apartments, condos, townhomes, and homes in all 42 states in which we do business.

We’re here to help you understand your options and get covered fast. With us, you’ll get:

• Clear guidance from licensed agents who explain coverage in plain language.
• Access to enhanced renters policies built specifically for renters, not just a generic add-on.
• Simple quote and enrollment process over the phone or through a secure online portal.
• Support that fits into your broader insurance picture, including if you have specialized or high-risk auto needs.

Want to talk through your options? We’re here to help. Call us at (833) 786-0237.