Often, people wonder what renters insurance is, and why they’re being required to have it. The why is an easier, faster answer – because it’s a good idea, because your family deserves the protection, and because your neighbors deserve to know that liability coverage will help you make good on damages you do to them. But, what is it and how much does it cost?
What Is Renters Insurance?
Renters insurance is like a homeowners policy, but without coverage for the actual structure itself. Otherwise, the policies are very similar. It breaks down into several component parts that make it a bit easier to understand, though.
What Is Renters Insurance Liability Coverage?
Renters insurance liability coverage protects you if you cause bodily injury or property damage to someone else. This could be something major, like a fire in the apartment that you’re responsible for, or something minor like bumping into someone on the street and knocking them down because you weren’t paying attention.
If you’re sued for something the liability part of the renters insurance would cover, the policy provides a defense to the claim or suit, and it also pays for a settlement or judgment if there is one.
What Is Renters Insurance Personal Property Coverage?
Renters insurance personal property coverage protects your stuff from fire, theft, vandalism, and many other things. It’s what buys you new property if you’re robbed or if there’s a fire. It usually pays at the cost to replace those items, though you should read your declarations and make sure that you have renters insurance replacement cost coverage.
What Is Renters Insurance Loss Of Use Coverage?
If you have a covered claim, renters insurance loss of use coverage pays for your additional living expenses, or loss of use, arising out of that claim. If there’s a fire and you can’t stay in the apartment while it’s being repaired, your hotel costs could get expensive quickly. Renters insurance loss of use coverage protects you from these costs.
How Much Does It Cost?
According to the Insurance Information Institute the average price of a renters insurance policy is $187 a year. This means that the average renter could have coverage for 51 cents a day. Considering that the average apartment has nearly $20,000 of personal property, that there are nearly 100,000 apartment fires, and 2,000,000 burglaries every year that is an incredible value.
If you’d like to learn more about what renters insurance is and why the Renters Insurance Challenge is necessary, please speak with an agent who can help you.