What is Renters Insurance?

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If you’re planning to rent an apartment, condo, or even a detached family home, renters’ or tenants’ insurance can protect you from the worst-case situations. It can cover you when your home is broken into, a friend hurts themself at your place, or the property is destroyed, and you’re forced to move out. Some landlords may even require you to have a renters insurance policy before selecting you as a tenant. Your landlord’s insurance may not cover you in many situations, so having renters insurance can cover much of the shortfall. 

This article goes over what Renters Insurance covers, what it doesn’t cover, what to look for in a policy, and what factors determine its costs. 

What is renters insurance?

What does renters insurance cover?

Most renters insurance policies cover three situations: when your stuff is destroyed or stolen, when you’re held personally liable for someone’s injury or loss due to an incident at your home, and when your home is destroyed and you need additional living accommodations. 

If your apartment building catches fire or gets broken into, renters insurance can cover your belongings’ replacement costs in most situations. How much you can claim depends on your policy. It’s a good idea to take inventory of your belongings, so you understand how much coverage you need. Many renters don’t realize how much it costs to replace their possessions until an unfortunate situation requires everything to be replaced. 

If someone comes to your home and slips in your kitchen, you may be legally liable for their injury. Renters insurance covers personal liability in your home, including legal fees, damage awards, and settlements. This can help you live with peace of mind anytime you decide to have guests over.  

If any number of disasters or unfortunate events destroy or damage where you live, you’ll likely need to hunker down in a hotel or Airbnb. The costs to stay at a temporary accommodation before you find your next rental can add up. Renters insurance usually covers the costs of additional living expenses until your place is fixed or you can find a new home. 

What does renters insurance not cover?

Renters insurance doesn’t cover all of your personal property. Business equipment and your car are two examples of what usually isn’t covered, and they require a separate insurance policy. If you leave personal property in your car, and your car gets broken into, your renters insurance likely won’t cover it either. 

Additionally, your personal property isn’t covered if it’s damaged or destroyed for reasons other than a fire, vandalism, burglary, or other situations covered in your policy. For example, if your unit’s washing machine breaks down due to wear and tear, don’t expect renters insurance to cover it. 

What to look for when getting tenant insurance

A Renters Insurance policy is different for different people. Three important things to look out for in a policy are:

  • Coverage limits: How much money you can claim for belonging replacements, legal-related costs, additional living expenses, etc. The more coverage you purchase, the more expensive your monthly insurance costs are.
  • Deductibles: Policies often require holders to pay an amount of money before they can make a claim. This amount can range from a few hundred to a few thousand dollars. The lower your deductible, the more expensive your monthly insurance price is. 
  • Scope of policy: Policies may include somethings and not others. For example, some renters insurance policies may exclude flooding. The broader the scope of your policy, the more expensive it will be. 

How much is tenant insurance?

The coverage limits, deductibles, and scope of the policy are essential to determine your policy’s cost. But there are numerous other factors that an insurance policy considers: 

  • The city you live in
  • The property type (i.e., condo, townhouse, single-detached home, etcetera) 
  • The age of your building
  • Your insurance history

In other words, it’s impossible so say exactly how much renters insurance will cost you since there’s no standard cost. Generally speaking, it’s relatively inexpensive, and as mentioned, it’s often a requirement from landlords.

The best renters insurance

The best renters insurance available is subjective since every package will vary from insurer to insurer. That said, Apollo Exchange is an online platform to help you find the best price for Renters Insurance. It instantly gets you a quote based on your needs and puts you in touch with a broker that can help you finalize a policy. This is an ideal company for those who don’t want to spend hours calling different insurance providers. Get a free quote on your Renters Insurance needs today. 

Get the best tenant insurance in minutes

  • Find and select the coverage you need
  • Premiums start at $19 per month
  • Get your policy documents instantly
Check insurance rates now

About Barry Choi

Barry Choi is a Toronto-based personal finance and travel expert who frequently makes media appearances. His blog Money We Have is one of Canada’s most trusted sources when it comes to money and travel. You can find him on Twitter:@barrychoi

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