What is renters insurance and what does it cover?

Renters insurance for apartment and home renters is the equivalent of  what home insurance is for a home owner.

As you might already know, there are several forms of home insurance. Renters insurance is considered HO4 Contents Broad Form Insurance.

The major difference is that a homeowners policy covers structural damage, while renters tenant policy only covers the apartment dwellers contents.

That raises a few questions then:

1. How does an apartment dwellers policy benefit me?

Well if you rent an apartment, a condo, a co-op, a town home, or a house it doesn’t matter because you are only insuring your personal belongings instead of a $200,000 house. Therefore, your coverage will be cheaper. That means you will save a lot of money!

2. Why do I need this? Won’t my landlord’s policy cover me?

Surprisingly, only about 1 in 3 apartment renters have tenant insurance. Why? Two out of three apartment renters mistakenly assume that their belongings are covered under the landlord’s policy. This is a tremendous costly mistake to make.

Remember that a landlord’s insurance policy only protects their structure. In other words, the landlord’s insurance will only pay to rebuild the house after it is damaged or destroyed. Then what about your clothes, your TV, iPad, furniture etc? The cold reality is that the renter is on his own to replace his belongings. Parents if you have a student that is living off campus this applies to you!

3. How much would it cost to replace everything I own in my apartment?

You may be very surprised how much everything adds up quickly if you had to buy everything all over again. What is the answer? Do an apartment home inventory.Then, with your camera, take pictures, document everything you own, and record the value of each item. This will help you in case you ever have to make a claim in the future.

4. What should I know before selecting renters coverage?

There are different kinds of renters coverage. You can get replacement cost coverage or an actual cash value policy. Replacement cost coverage gives you the full price to replace your item, minus the deductible. On the other hand, an actual cash value policy will give you the current depreciated value, minus any deductible. If you want the best value for your buck, choose “replacement cost coverage.”

5. Are there any other benefits for you?

Yes! If your current apartment burns down, then where will you live in the meantime? Who will pay your hotel bills? A renters policy will help defray the costs until you move into your place again.

One final thing: What if someone fell and hurt themselves in your apartment and the hospital bill was $10,000. What would you do then? A renters policy includes a liability plan to help protect you in this regard. I think you will agree its time to protect yourself, isn’t it?

Aa renters policy can be yours for as little as $20 a month. That’s a very cheap way to have peace of mind. Your renters insurance professional at InsuranceHub is ready to answer all of your questions about protecting your possessions in the place you are renting.