Renters Insurance

The amount of coverage needed primarily depends on two factors:

• How much personal property do you have?: Taking a home inventory can help you determine the combined worth of all your stuff. For example, if your belongings total $30,000 in value, then you need at least that much in personal property coverage.
• What is your net worth?: If you’re liable for someone else’s injuries or property damage, you need enough liability coverage to cover what you have to lose. For instance, if your assets add up to $100,000, you need at least that much in liability coverage.

Your renter’s policy won’t cover certain incidents, including damage or injuries resulting from:

• Termites, rodents, bedbugs, and other pests
• Flooding, earthquakes, and sinkholes
• Aggressive dog breeds (check with your provider for details)

Additionally, while your belongings stolen out of your car are covered under renters insurance, the actual vehicle is not.

While landlords likely have an insurance policy in place to cover damage to their rental property, a renters policy protects against damage to the renter’s belongings — which means less liability for landlords if the tenant’s stuff is damaged or a tenant causes damage to another tenant’s unit. Moreover, if there is a fire or significant damage to the rental, causing the renter to live elsewhere while the repairs are made, additional living expense coverage on a renters insurance policy can pay for temporary housing.

Some landlords may require you to list them on your renters insurance policy before you can move in.

A renters policy won’t cover damage due to flooding. For that, you need a flood insurance policy. However, your personal belongings are typically covered if the water damage is sudden, accidental, and comes from inside the residence.