Basics of Renters Insurance

Although many people don't bother with renters insurance, it can be a prudent investment for the low cost. As of 2009, renters insurance costs between about $10 and $15 a month, and covers property damage or loss, as well as liability for injury. The landlord's insurance won't cover a renter's belongings if anything happens to them.

Basic Coverage

Renters insurance covers loss or damage to personal belongings in the event of a fire or storm, and often for water damage if a pipe breaks. Renters insurance also covers loss due to theft or vandalism.

Living Expenses

Additionally, if a fire or storm makes the apartment or house uninhabitable, some policies cover any extra cost of another place to live until repairs are made.

Replacement Cost Considerations

Many people don't realize how much their belongings actually are worth. A person should consider the replacement cost of computers and all other electronic equipment, jewelry, furniture, clothing and any additional valuable items.

Stolen Property

Some policies cover possessions if they are stolen when located somewhere other than home, such as a bicycle, cell phone, or laptop computer.

Liability Insurance

Liability insurance in a renters policy prevents the chance the renter will be held financially responsible if someone is injured at the apartment or rented house.

Discounts

Insurance companies typically provide significant discounts on renters insurance if the individual also has auto insurance with the company. Adding a renters insurance policy might cost only $2 more a month.