Renters Insurance FAQ
An individual who rents a home or apartment should purchase renter's insurance. A landlord's policy covers the structure and not a renter's personal belongings. Before purchasing a policy, a renter should understand the purpose, items covered and cost.
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Purpose
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Renter's insurance pays to replace a renter's possessions when they are damaged due to specific weather incidents, fire, theft or vandalism. The policy also provides liability coverage if an individual is injured in a policyholder's rental home. If a policyholder's rental unit is uninhabitable, the policy will help pay the costs to live elsewhere.
Cost
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The National Association of Insurance Commissioners states the average policy costs a renter between $15 and $30 a month. Some insurance companies offer discounts to a policyholder who has smoke detectors, a burglar alarm, deadbolt or sprinkler system in the rental home.
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Additional Coverage
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Most policies do not provide coverage for an earthquake or flood. A policyholder may need to purchase a separate policy to have coverage.
Tip
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A policyholder should keep an inventory of his items to help when filing a claim. Photos provide accurate information about the possessions.
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