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Personal Property
What is Renters Insurance and Why is it So Important?
Get the legal advice you need without the hourly legal fees
If you are renting an apartment or house, you may be wondering: do I need renters insurance? The short answer is yes—renters insurance is one of the most affordable and valuable protections available to tenants.
Here’s what renters insurance covers, why it matters, and how much it typically costs.
What is renters insurance?
Renters insurance is a type of insurance policy that protects tenants from financial losses related to their personal property and certain liabilities. Unlike homeowners insurance, it does not cover the physical structure of the building—that’s the landlord’s responsibility. Renters insurance covers what’s inside your home: your belongings and your personal liability.
What does renters insurance cover?
Personal property
Renters insurance covers your personal belongings—furniture, electronics, clothing, appliances, and more—against covered perils like fire, theft, vandalism, and certain types of water damage. If your apartment is burglarized or damaged in a fire, renters insurance can help replace what you lost.
Liability protection
If someone is injured in your rental unit, or if you accidentally damage someone else’s property, renters insurance can cover legal fees and damages up to your policy’s limit. For example, if a guest slips and falls in your apartment and sues you, liability coverage could help pay for medical bills and legal defense costs.
Additional living expenses
If your rental becomes uninhabitable due to a covered loss (like a fire), renters insurance may pay for temporary housing—such as a hotel—while repairs are made.
How much does renters insurance cost?
Renters insurance is typically very affordable. The average policy costs between $15 and $30 per month, depending on the amount of coverage, your location, and your deductible. Given what it covers, it’s one of the best values in personal insurance.
Is renters insurance required?
Renters insurance is not required by law, but many landlords require it as a condition of your lease. Even if it’s not required, having it is strongly recommended.
How LegalShield can help
If you have a dispute with your landlord over a lease requirement for renters insurance, or if an insurance claim is denied and you believe it shouldn’t be, a LegalShield provider lawyer can review your situation and help you understand your options.
Explore LegalShield’s resources for renters to learn more about how we can help.
Frequently Asked Questions
Sometimes. It all depends on what caused the water damage in the first place. If a pipe bursts or a sink leaks and something valuable gets hurt by the water, your policy may cover the costs incurred. But if a natural disaster floods your basement, you might be out of luck.
Worried about floods in your area? Consider investing in a separate flood insurance policy.
Once again, the answer is sometimes. If your personal property is stolen out of your home, your policy should pay the cost of that property. Just make sure you have paid enough to cover the worth of your belongings.Your renters insurance policy will not cover vehicle theft. However, if a thief breaks your car window and steals items out of your vehicle, your policy will not pay for the car damages—but it may pay the costs of those stolen items.
What about clothing? While laundry theft is annoying, you can rest easy knowing your insurance policy should pay for these losses.
The price of rental home insurance varies depending on what you want protected. Generally, a policy will cost around $200 or less per year. If you want to cover more items or protect against certain scenarios, you will need to pay more to ensure that your policy is prepared for those instances.
Landlords want to protect you, themselves, and everybody else. By making sure you have a renters insurance policy in place, landlords can rest easy knowing that you are financially and legally safe if something bad happens. It also adds a layer of protection for them, in case a lawsuit arises. And if your renters insurance covers the cost of a big loss, that keeps your landlord’s insurance claims from skyrocketing. Renters insurance helps everyone and hurts no one!
Need some extra help? Here’s how to get it
Renting a home requires patience, understanding between parties, and knowledge of the law. Throw in renters insurance for apartments, houses, and other spaces, and you’ve got yourself a complicated issue! You don’t have to navigate this journey alone.
For over 50 years, LegalShield has existed to serve people just like you. For a small, automatically renewing monthly fee that you can cancel anytime, you can get access to a dedicated provider law firm of lawyers.
Consult your LegalShield provider law firm to receive advice on an unlimited number of personal legal questions, get a document reviewed (starting at up to 15 pages or less) on an unlimited number of personal legal matters after consultation, and a phone call or letter can be provided on your behalf if the provider law firm determines it would be in your aid. Contact your provider law firm 24/7 with covered legal emergencies, and more—all because we care!
As you prepare to live in your rental space, you can rest easy knowing your LegalShield provider law firm is here for you as a LegalShield member.
Get good deals and make sure you have access to LegalShield protection. Ask your provider law firm for advice and have them review your renters insurance today.
Speak to a provider law firm in your state through LegalShield’s network of professionals with your personal coverage plan.Do you have questions regarding your lease agreement? Here are some things to keep in mind when signing a rental agreement.
Get the Answers You Need, When You Need Them
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