5 Things to Know About Renters Insurance

Do you have renters insurance or even know what it is? Here are 5 things you need to know about renters insurance policies and why every renter should have one.

According to often cited survey, only about 40 % those who rent their homes have a renters insurance policy. In contract, 96% of homeowners carry insurance. This begs the question why there’s such a discrepancy.

In my opinion, it seems that the reason most people don’t have renters insurance is because they don’t fully understand it or its benefits. With that, here are 5 things you should know about renters insurance policies.

1) The first thing you should know about renters insurance is what types of events and incidents it covers you against.

Most renters insurance policies will protect you from various damages and thefts. This includes losses resulting from wind storms, fires, vandalism, and more. However, some events that aren’t typically covered include floods and earthquakes. That’s why you’ll want to double check the terms of your policy and see if additional coverage may be needed.

2) Something that most people don’t realize about renters insurance is that your items don't need to be in your home at the time that they’re damaged or stolen in order to be covered.

While you might assume that renters insurance policies wouldn’t apply to items you take outside of your home, that actually isn’t the case. In fact, a major misconception about renters insurance is that it’s covering your home when in reality it’s covering all of your items. For me, this aspect of renters insurance is what really makes it worth it as it protects from a vast number of issues and could prevent heartbreaking situations from becoming bank-breaking ones.

So whether your luggage is stolen while you're on vacation or your laptop gets damaged at the cafe, you can rest easy knowing that your policy will likely reimburse you.

3) Speaking of reimbursement, when you’re purchasing renters insurance, you want to know if your policy pays actual cash value or replacement value on claims.

There are two main types of renters insurance policies: those that pay out actual cash value and those that offer replacement value. While actual cash value policies may be cheaper, this means that your reimbursement will factor in things like depreciation and condition. In other words, you’ll get less cash on your claim.

However replacement value policies will pay out what the claimed items would cost you to purchase new, meaning you won’t have to pony up anything extra. That’s why, if possible, I’d recommend searching for a replacement value renters insurance policy.

4) Now that you have a better idea of how renters insurance works, it should be noted that these policies are fairly affordable when compared to other types of insurance.

Perhaps the most surprising thing about most renters insurance policies is that they don’t cost as much as you might think. According to ValuePenguin, some areas offer basic policies for as little as $10 a month while more storm-prone cities average closer to $20 a month. Obviously these prices can vary depending on a number of factors, but overall they typically present a good value.

5) Finally, as affordable as renters insurance already is, you may be even to save even more on your policy in a few different way.

One popular way of saving on your renters insurance policy is to bundle it with your auto insurance. In most cases, you can save a significant amount by going this route.

Speaking of auto insurance, just your premium may be lower if your car has certain safety and security features, the same is true of some renters insurance policies. Finally, if you to save money now but possible pay more down the road, there’s always the option to select a policy with a larger deductible. Just keep in mind that while this will lead to a lower monthly premium, it does mean you’ll have to pay more out of pocket should you need to file a claim.

[Emery-Coffey]

Explained what I needs to know in simple language. Thank u! I'm going in search for renters insurance as I live in Harlem NYC in NYCHA where the apt directly above me was on fire 4 days ago. That apt was engulfed and destroyed. I suffered water damage. I have my life.

[DUBUNDAD]

The quality and sincerity of the video was nice, appreciated man!

[gardenofthemystic]

i’m looking to move out and the building i want requires this. I was expecting this to be a larger payment but it’s surprisingly low! vid was helpful tyyy

[honeybeejones]

this video was very helpful and concise! thank you!

[davidtompkins]

5 more reasons why renters insurance is important and we should have. Thanks for sharing.

[barrysmith]

Definitely a good explanation of renters insurance and its coverage.

[TheKingOfHalo]

Cool. I’m getting ready to move out and some places in my area require renters insurance. I thought I’d be paying a lot more for coverage.

[henrymcardle]

Good video. Reason that so many homeowners have insurance is because nearly all lenders require that the owner insure their interest, and nearly all homeowners buy with debt.

[jacobkayla]

Usually, renters' insurance is not a priority in getting insurance policy but thanks for presenting its benefits.

[addminusDIY]

My apartment was involved in fire, good thing i have renters insurance 👍🏼

[scorpionsilvermoon]

GREAT video. Which do you have? I went to a B apartment and they required $300k in Renters Insurance. I asked them why so much my items aren't worth that much. They said to cover their property? I was thinking... That makes no sense. I asked the Realtor to explain she couldn't. So I'm not going to rent there. The others require $100K

[rachelledizon]

I have my AAA insurance is it true once they replace a new item they gonna take my old stuff?

[escoba]

I am an mobile home owner....but pay space rent. Can I get renters insurance?

[selenadennis]

What does the insurance company do if they consider your theft claim to be false and say you didn't live at that address

[billycorgan]

My apartment complex wants to use renter's insurance to fix a sink that's been broken for a year has a crack in it they've known about it's been documented and it's a year later and now they want to use my renter's insurance to pay for the new sink cost should they be providing or are they right and using my renter's insurance to pay for the new sink does not crack from anything that I did it just was a cheap sink that they installed and I noticed it was cracked one day and it got so bad now there's a hole in the sink

[_-___________]

Renter's insurance is an unnecessary expense for those who don't have a large investment in their apartments or objects. For instance, the most expensive thing I own is a 200 dollar computer. What's the point in spending 100-200 dollars a year to protect that when I could just buy a new one in the event that it is stolen?
"It's cheap so buy it!" I'm guessing that you go out to eat at fast food because it's only 10$ for a meal, and that's not a lot of money. What you're forgetting is that every single little thing adds up. Yeah, it's only 10$, but what about your next meal? What about breakfast tomorrow. With 3 meals a day, spending 10$ on a meal ends up being hundreds of dollars every month.
"You can spend less on this unnecessary expense." It doesn't matter how much you "save" on an unnecessary expense. You are spending money that you don't need to. Stop.

[carmencita_the_comedian]

Explained what I needs to know in simple language. Thank u! I'm going in search for renters insurance as I live in Harlem NYC in NYCHA where the apt directly above me was on fire 4 days ago. That apt was engulfed and destroyed. I suffered water damage. I have my life.