A Guide to Renters Insurance

Today, we're gonna go over the complete guide of what renter's insurance does and doesn't cover. So make sure to always contact a professional before making any decisions. 

As a tenant, you're not responsible for ensuring the building that you live in. That's the landlord's responsibility. But you are responsible for taking out renter's insurance to protect your personal belongings and provide liability coverage. While not legally required, most renters should seriously consider obtaining renter's insurance to protect themselves and their property.

So what is renter's insurance? 

Well, it's also known as tenants insurance or HO4 renter's insurance. This is an insurancepolicy that you take out when renting a property. The purpose of this policy is to protect your personal belongings and provide liability coverage. Renter's insurance is similar to homeowner's insurance because it covers the same scenarios, example, fire or theft. However, renter's insurance is significantly less expensive because it only ensures your belongings and not the physical building.

Additionally, the liability portion of renter's insurance protects you against losses if anybody's injured on the property that you rent. If the injury's due to a structural issue with the building, the landlord's insurance will step in and cover any losses. However, if the injury is due to non-structural issues, for example, if someone trips over a loose piece of wood on the lawn of the house that you're renting, then your renter's insurance policy will cover the losses.

What does renter's insurance cover?

Well, rent insurance doesn't only cover your personal items, it also pays your reasonable expenses if you have to temporarily relocate due to the building repairs. It includes liability insurance and provides medical payments to anybody injured on the property as long as the injury isn't due to a structural issue with the building. Your renter's insurance policy will reimburse you for the cost of repairing or replacing your personal items if they're lost or damaged due to the specific events listed in your policy. Most policies include coverage for the following events:

fire and smoke damage, lightning, windstorm, and hail damage, explosions, riot or civil unrest,  damages caused by aircraft or vehicles, vandalism, theft, volcanic eruption, an object falling on your property, damage from snow, ice, and sleet, accidental discharge of water and stream or cracking and burning from within certain household systems or appliances, household appliances or systems freezing, and accidental damage from artificially-generated electric currents.

Renter's insurance protects your belongings, whether or not you were in the building during the event. For instance, if a fire starts in the building that you're renting while you're at work, your renter's insurance will still cover the losses of your personal belongings, even though you were away from the building when the fire started. 

What does renter's insurance not cover?

As with any insurance policy, your renter's insurance has exclusions. There are four main exclusions to most rental insurance policies. Let's take a look. There's flood damage, earthquake damage, infestations, and your roommate's belongings. If you want coverage for those four events, you have to purchase additional optional coverage. Depending on your state laws, you may be able to add a secondary  insured on renter's insurance  to cover your roommate's belongings as well, but it's best practice for each person to get their own individual policy.

So what are some options for renter's insurance coverage?

Well, if you need insurance for less common events that aren't included in the standard renter's insurance policy, you can add optional add-ons to your policy. You can add insurance coverage for things like earthquakes, floods, or a sinkhole endorsement if you live in an area where these events are more common.  You can even increase the amount of your renter's insurance coverage as an optional add-on. You should speak with your insurance provider about any optional add-ons you want in your renter's insurance policy. Not every policy provider offers every add-on so you may have to seek out a different insurance provider to get the extra coverage that you want.

How much renter's insurance does someone need?

Well, the amount of renter's insurance that you need will depend on how much the personal belongings  that you're ensuring are worth. You can use a renter's insurance calculator to figure out how much your belongings are worth and how much renter's insurance that you need. The average renter's insurance policy includes $100,000 worth of liability insurance, which should be enough for the average person,  but you do have the option of adding more liability coverage if you wish. 

So how much does renter's insurance cost? 

Well, the cost of your renter's insurance depends on the level of coverage that you want and where you live. In the United States, the average annual cost of  renter's insurance is about $168. Louisiana has the highest average annual cost of 262 and renter's insurance in Wyoming is the least expensive at only 101 on average per year. With all things considered, renter's insurance is very affordable and it's worth paying a little bit of money to protect yourself from unexpected damages. It's easy and straightforward to get renter's insurance. 

Nearly every insurance company provides renter's insurance and you can normally complete an application online. Some insurance companies offer a deal if you purchase both your car and renter's insurance through them. So you may wanna contactyour car insurance company when getting quotes for renter's insurance. No matter what, you should always shop around and find the best deal on renter's insurance.

According to US News, the cheapest renter's insurance providers include Nationwide, State Farm, and Farmers. So here's some questions you might be wondering about. 

Is renter's insurance required by law? 

Well, renter's insurance is not required by law, however many landlords require their tenants to have renter's insurance as part of the lease agreement. You should always read the lease agreement closely before signing to ensure that you've met all the requirements and that there are no requirements you don't feel comfortable with.

So another question. Is there pit bull-friendlyrenter's insurance? 

Unfortunately, many insurers consider pit bulls to be an aggressive dog. So this makes it more difficult for pit bull owners to be approved for renter's insurance. So when completing yourrenter's insurance application, you're asked what breed of dog that you own. If you answer pit bull, most insurance providers will decline your application. Your renter's insurance provides liability insurance, which covers any damages related to your dog biting someone.

Renter's insurance companies consider pit bulls as more likely to bite people aggressively and don't wanna be liable for those damages. However, there are some insurers that are more accepting of pit bull owners. For instance, State Farm doesn't ask about your dog's breed and universally approves renter's insurance for pit bull owners. 

Does renter's insurance cover trampolines? 

Whether or not your renter's insurance covers a trampoline depends on your insurance provider and policy. So, some insurance companies will approve for your renter's insurance if you disclose that you own a trampoline and others won't. Even if the insurance company approves your application, your premiums will be higher if you do own a trampoline. 

Trampolines are considered an attractive nuisance  because they pose a great liability risk for the insurers. The more risk an insurance company takes on when ensuring you, the higher your premiums will be.  If you purchase a trampoline after your approval for renter's insurance,  it's your responsibility to notify your insurance provider and your renter's insurance policy could potentially be voided if you don't notify your insurance company that there is now a trampoline on your property.

Can you backdate renter's insurance?

You cannot backdate renter's insurance, especially if you're trying to obtain coverage for a loss that already happened. If there was no coverage in place at the time of the loss, you can't get coverage for it now. It's important that you obtain your renter's insurance policy as soon as you move into a rented home to ensure that you're properly protected from the day that you move in. You'll also need to make your monthly or annual payments on time to ensure that your coverage is maintained throughout and there are no gaps in your coverage.

Does renter's insurance cover theft?

Yes, theft of your personal belongings is generally covered under renter's insurance.

Does renter's insurance cover mold?

Renter's insurance is there to cover you from damage caused by sudden events, for example, freezing cold weather can cause the pipes from your house to burst, flooding your basement. This can cause mold to develop. Under renter's insurance, this circumstances would be covered. Does renter's insurance 

cover broken windows?

Well, it depends on the circumstances. For example, if hail was to cause the damage to the windows, then renter's insurance would cover the cost of repair or replacement. If the window's broken due to human error, then the renter's insurance will not cover the cost. So let's have a look at a possible scenario and see how renter's insurance would protect you. 

Let's say there was a bad storm and lightning struck your dwelling, causing a fire, which burnt through and destroyed your belongings, such as your bed, sofas, or electronics. Your renter's policy would pay  you the value of your such belongings minus your deductible. If the damage to your home displaces you while repairs are being done, your renter's insurance will cover such things as restaurant meals, hotel bills, and other costs that you would normally pay. 

As I mentioned before, renter's insurance isn't mandatory or required by law, but more for peace of mind and it's an affordable option. So when making the decision to purchase renter's insurance, make sure to always evaluate your needs and research insurance companies in the area and state, and also shop around. I hope you enjoyed this session on rental insurance, always be sure to ask your agent or insurance provider about any questions you may have.