What is Renters Insurance?
Renters insurance is the insurance that is purchased by an apartment tenant for the benefit of protecting the tenant’s personal assets and possessions. It typically includes property and liability coverage. It is distinct from the building owner’s policy, which protects only the structure for the benefit of the owner.

What does Renters Insurance Cover?
The property coverage in the policy provides protection for the tenant up to the level of insurance purchased. The most basic Renters Insurance policy covers personal property of the tenant like furniture, clothing, and books. More inclusive policies will include replacement cost coverage endorsement, which mandates the insurance company to pay for a new item regardless of age of damaged article. Lesser policies will deduct for depreciation on the claim settlement.

Liability contained in these policies is fairly standard, and provides coverage for injuries or mishaps that may occur in or outside the rented apartment. There are different amounts of liability coverage depending on needs of policy holder.

What are additional coverage options?
The Renters Insurance policy can also include additional coverage. Although this optional coverage adds to the policy premium, the bulk of the policy cost is typically comprised from the base policy, with optional coverages being fairly economical. Below are some of the more important endorsement that can be added to the policy:

  • Valuables coverage – In the event that a valuable item such as jewelry, gold, silver, or fine art is damaged or lost, the insurance company will provide reimbursement. This is an important policy enhancement, as theft and loss of valuable items is a frequent occurrence.
  • Identity theft coverage – This endorsement provides coverage to remediate the cost of an identity theft or privacy breach. This type of coverage is becoming more important by the day, as identity theft and privacy breaches are turning into common place occurrences.
  • Loss of use coverage – This endorsement provides coverage for a tenant to seek temporary shelter while a damaged apartment is being repaired. During a time of stress, the knowledge that the tenant will have a roof over his head is of the utmost benefit.

Who is responsible to purchase a Renters Policy?
Renters insurance is not mandatory by law. However, many apartment communities mandate in their lease that tenants purchase such coverage.  (Obviously it is important that tenants be familiar with the terms of their lease.) Even when not required by the property owner, it is highly advisable that Renters Insurance be purchased by tenants. The overall cost of policy is very low in relation to the benefits provided by the policy.

Are there ways to lower the cost of Renters Insurance?
Cost of policies may be lowered by increasing deductibles on policies. Costs can also be lowered by applying discounts such as installing burglar and fire alarms. Additional discounts may be available by combining renters and automobile insurance policies with one insurance carrier.