- Renter's insurance, also known as tenant's insurance, is an insurance policy that covers damages and liability that result from renting a piece of property. Since homeowners have equity in their homes, they typically buy homeowner's insurance to protect against damages caused by first, floods, hurricanes and other unforeseen events. Renters do not own their apartments, so oftentimes they do not get insurance, or are not even aware that insurance is available. Many people assume that their landlords insure the building that they are in, which in turn ensures them against damages. This protects against damage to the building itself, but not items within the building.
- Renter's insurance is meant to protect tenants from loss of personal property. If an apartment complex burns down, or items are stolen, renter's insurance can provide money for the value of the items lost. The types of items that can be recovered typically include furniture, appliances, electronics and clothing among others. Another thing renter's insurance can protect against is liability related to the rented property. Say a cable man comes to install a digital box in your apartment and something you have laying around causes him to trip an injure himself; liability insurance would pay for damages if he tried to sue you.
- Whether renter's insurance is worth buying comes down to specific renters and apartment complexes. Renter's insurance is relatively cheap, often between $15 and $30 per month, which can be well worth the peace of mind that your possessions and liabilities are taken care of. On the other hand, a renter with a spartan lifestyle may have few valuable possessions, in which case spending the extra money on insuring them might not be worthwhile. If an apartment is in a crime-ridden neighborhood, insurance is a good idea; if it is in a safe neighborhood, the risk of theft might be low. Similarly, an apartment is more likely to be broken into if it is on the first floor as opposed to an upper floor. In many American cities, fewer than 50 percent of people have renter's insurance, but the number of people insured has risen in recent years.
