How Do I Get Renters Insurance and Do I Need It?

It’s fairly safe to say that most Americans know about health insurance, car insurance, and even homeowners insurance. But in our experience, we’ve found that not as many people know what renters insurance is, let alone how to get it. In fact, it’s estimated that only 37% of renters have renters insurance.

For the remaining 63% out there who don’t have renters insurance, keep reading! This post will cover everything you need to know about getting renters insurance.

What’s Covered Under Renters Insurance?

As its name suggests, renters insurance is designed for anyone living in a rental property. Think of it as insurance for everything inside of a rental house or apartment as opposed to the structure itself. Every rental company or landlord has separate insurance to cover the structure.

Renters insurance coverage varies from provider to provider, which is why it’s important to shop around. However, a standard renters insurance policy has personal property coverage, liability coverage, and loss-of-use coverage.

Personal property coverage is just that—coverage for all of the renter’s claimed belongings! If anything gets stolen or destroyed by a covered peril (like a fire), the insurance company will pay to replace it. Liability coverage protects renters if someone gets injured in their home or if they cause damage to another person’s property. Finally, loss-of-use coverage helps renters pay for somewhere else to stay if their home is uninhabitable after a disaster.

How Do I Get Renters Insurance?

Thankfully, getting renters insurance is a straightforward process, and it can easily be done online these days. But the first step is to take inventory of all the belongings you want to be covered.

The last thing you want is to pay for $10,000 of personal property coverage only to find that you have $15,000 worth of items in your rental home. So make a list of things like jewelry, TVs, computers, artwork, gaming consoles, or anything else that you want to be covered. If you still have receipts for these items, take a photo of them—having proof of something’s value can expedite the insurance company’s payout process.

Next, log onto your computer and start searching around for quotes. It’s pretty easy to find affordable renters insurance. In fact, many renters insurance providers have great policies for under $20 per month. Of course, your total renters insurance cost depends on the policy you get along with any add-ons, like coverage from floods or pest infestations—which aren’t common on most policies.

Once you find a policy that meets your needs and your budget, simply sign up and make your monthly payment! Hopefully, you’ll never need to contact your renters insurance company to make a claim. But at least you’ll rest easy at night knowing your belongings are protected.

Is Renters Insurance Required?

“Do I need renters insurance?” is a question property managers and landlords hear all the time. The simple answer is yes; most renters need it, but not because it’s required by law. Unlike car insurance, there’s no law stating that renters must obtain renters insurance.

Landlords and property management companies are the ones who require their renters to have insurance. Additionally, many leases will have a clause regarding the minimum amount of renters insurance a tenant must carry.

Renters insurance reduces a landlord’s liability if an accident occurs at the rental property and prevents renters from trying to collect a payout if their belongings are damaged by a natural disaster.

But at the end of the day, renters insurance benefits the tenant just as much as it does for the owner of the home or building.

How Much Renters Insurance Do I Need?

As we touched on above, the amount of renters insurance you decide to get depends on how much stuff you want to be covered. If you don’t have too many high-value items in your home, you can get a simple policy that just meets the criteria outlined in your lease agreement.

Our advice is to err on the side of caution and get a larger renters insurance policy than you think you’ll actually need. It’s hard to imagine a worse scenario than finding out all of your belongings weren’t covered in your policy after a natural disaster damaged your rental home.

Rent Your Next Home From Christopher Todd Communities

If you’re looking for a new rental home, be sure to consider Christopher Todd Communities! Our build-to-rent communities offer single-family homes designed with no shared walls between neighbors for the peace and quiet you deserve! Plus, we have all of the luxe resort-style amenities that make everyday life a dream.

Come experience how we offer A New Way To Live® by speaking with one of our team members today.