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Most people believe the answer to that question is the amount required by a landlord or rental company as defined in their lease, but that answer might not be right for you. Think about the things you own. Then think about what it would cost to repurchase or pay to repair those items if they were lost or damaged during a robbery, fire or other incident. That’s where renters insurance comes in. It can help you cover the cost to replace the things you lose because of an unexpected event. It also can help pay for housing and other living expenses should your apartment, condo or home become uninhabitable due to a covered loss. In addition, it can help to pay expenses if you damage someone else’s property or are found liable for someone’s injuries. Even though the amount of renters insurance you should purchase depends on your personal circumstances, the average cost of renters insurance hovers around $326 a year, or about $27 a month. That’s the national average cost of a policy with $40,000 in personal property coverage and $100,000 of liability and a $1,000 deductible, according to a 2021 analysis conducted by insurance.com.1 Even a lower cost renters insurance policy could make a big difference in your life and help give you peace of mind if an unfortunate event occurs. What Renters Insurance CoversLet’s start with the basics and go over the three things a renters insurance policy typically covers:
Some of the common perils covered by renters insurance include losses resulting from:
Your policy documents will define what perils are covered. It’s important to note that, typically, renters insurance policies don’t cover flood or earthquake damage. You may need to purchase separate coverage if your rental home, apartment or condo is located in an area where these things are likely to happen. Determine How Much Renters Insurance Coverage You NeedAsk yourself these questions to figure out how much your possessions are worth: What Do I Own?You’ll want to make certain that your insurance policy provides adequate coverage for all of your belongings. Start by taking an inventory. Make a list of everything you own and its estimated value so you know how much it would cost to replace or repair anything if it’s stolen or damaged. You don’t need to figure out the exact price of every item in your unit, but consider doing an online search to estimate the current value of your stuff. Look through your closets, drawers and storage areas, too. You may have valuables put away that you don’t remember. Do I Need Additional Limits?Every renters insurance policy has an overall limit for property claims. For example, if yours is $25,000, that’s the most your insurance company will pay for losses resulting from a covered event. Some renters insurance policies have sub-limits on certain categories of items like fine arts, silverware and jewelry. In the case of the $25,000 policy, the jewelry sub-limit may only cover up to $1,500, despite the higher overall policy limit. Before you buy a renters insurance policy, make sure you understand its coverage limits and sub-limits. They should be adequate to cover the value of your possessions. Your insurance agent can work with you to help make sure you have appropriate coverage, including for your valuable or non-standard items. Do I Need Any Liability Coverage?Yes. If someone is injured in your rental unit or their property is damaged, or someone related to you causes damage, you could be pursued for damages. For example, if you break an expensive vase at a relative’s home or if your teenage child damages a neighbor’s garage, the right policy could cover you. These costs can add up fast and having enough liability coverage may allow you to handle them without dipping into your savings or emergency fund. Many renters insurance policies include some liability coverage. Everyone’s situation is unique, and you should speak to your local independent agent or a Travelers representative to understand how much liability coverage you may need. Ways to Save on Your Renters Insurance PremiumThere are several ways you can save on your renters insurance:
Are you still asking yourself whether renters insurance is worth it? Talk to your local independent agent or a Travelers representative for more information or to get a renters insurance quote. More Prepare & PreventHow should a person decide how much coverage she needs when selecting renters insurance?Before you buy a policy, you should make a personal inventory of the value of your possessions to determine how much renters insurance is enough to cover your cost of replacing them. Take note that policies will often have sub-limits, also called category limits, for particularly high-value items.
How is personal property coverage calculated?The percentage can range from about 20-50% of your total coverage limits. For example, your homeowners home structure coverage is $500,000. If your personal property coverage is 40% of that, you would have $200,000 in coverage for your personal property.
What percentage of coverage A is personal property?Most personal property policies provide coverage for your belongings at 50-70% of your dwelling insurance. However, you could need less or more coverage depending on the value of your belongings.
Do I need renters insurance if I live with my boyfriend?If you don't have your own renters insurance policy, it could mean serious financial ramifications for you and the loss of all your savings. Let's say this again: when you move in with someone, if you and the homeowner are not married, you must get your own renters insurance policy.
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