Rental Insurance Information

An apartment's insurance policy does not protect your personal property.

Renters insurance is a personal insurance policy for people who live in rental housing, such as apartments, townhomes or rented houses. The insurance is designed to protect personal property.

Function

Renters insurance protects certain personal property items inside of a rented home. The insurance covers incidents including fire, water damage, theft, smoke damage or vandalism, according to the Insurance Information Institute.

Benefits

Depending on which type of rental insurance that an individual purchases, the insurance company reimburses for either the actual cash value of the property or the estimated replacement cost of the property. Actual cash value factors in depreciation, while estimated replacement cost does not.

Considerations

Standard renters insurance provides only limited coverage for valuable property such as jewelry, fine art, gold or furs. A renter can purchase a supplemental policy, called a floater, to provide additional coverage for these valuables.

References

• Insure: The Basics of Renters Insurance
• Insurance Information Institute: Renters Insurance