{"id":302,"date":"2019-10-24T15:02:31","date_gmt":"2019-10-24T22:02:31","guid":{"rendered":"https:\/\/www.insureone.com\/knowledge-center\/?p=302"},"modified":"2025-10-21T20:03:15","modified_gmt":"2025-10-22T03:03:15","slug":"what-renters-need-to-know-renters-insurance","status":"publish","type":"post","link":"https:\/\/www.insureone.com\/knowledge-center\/renters\/renters-insurance-basics\/what-renters-need-to-know-renters-insurance\/","title":{"rendered":"What Renters Need to Know About Renters Insurance"},"content":{"rendered":"\n

You\u2019re in your new apartment when, suddenly, the smoke alarm goes off. There\u2019s a fire next door and you\u2019re about to lose everything. Luckily, your renters insurance<\/a> will soften the blow by replacing your wide screen plasma TV or other furnishings. But, what if you\u2019re not covered or you just haven\u2019t gotten around to getting renters insurance?<\/p>\n\n\n\n

In short \u2013 you\u2019re out of luck. Whatever you\u2019re about to lose from smoke, fire or water damage is on you. Sadly, it\u2019s an all-too-familiar story \u2013 adjoining apartment residents having virtually everything they own get completely wiped out in a major fire because of someone else\u2019s mistake or negligence.<\/p>\n\n\n\n

While some of those tenants will find financial support for their losses through their renters\u2019 insurance policies, a majority of the rest won\u2019t have coverage at all. According to a 2007 survey by Apartments.com<\/a>, the reasons vary \u2013 from believing they can\u2019t afford it \u2013 to meaning to get around to it \u2013 to not even knowing renters insurance exists or that the landlord\u2019s insurance will take care of their belongings.<\/p>\n\n\n\n

These are all silly excuses for not having coverage. The fact is \u2013 the cost of protecting your stuff isn\u2019t prohibitive. The average renters insurance in the United States is about $200 annually, according to Loretta Worters, a spokeswoman for the Insurance Information Institute<\/a>.<\/p>\n\n\n\n

Furthermore, a lot of people don\u2019t think about purchasing renters insurance simply because they think their landlord is responsible \u2013 and, they would be wrong. In reality, it\u2019s the tenant\u2019s responsibility to take care of their own belongings \u2013 not the landlords.<\/p>\n\n\n\n

And, the cost of replacing those damaged or destroyed belongings can add up. Most people have computers, stereos, plasma TVs and other expensive furnishings \u2013 whether they\u2019re young and just starting out or older with an apartment full of items that are part of the average urban lifestyle these days.<\/p>\n\n\n\n

Now, a few things renters need to know about renters insurance:<\/p>\n\n\n\n

1.<\/strong> It\u2019s not expensive considering the value of your belongings. While the $200 annual cost is a generalization, it will vary according to the area you live in and value of your home. It may also depend on the deductible you choose. If you\u2019re insured with auto coverage<\/a> from a company that also offers renters insurance, you can bundle and keep the cost down.<\/p>\n\n\n\n

2.<\/strong> There are two forms of coverage available and this is important to note \u2013 because policies usually cover property losses in one of two ways; either the \u201cactual cash value\u201d or the \u201creplacement value\u201d of the household objects when paying out a claim.<\/p>\n\n\n\n

\u2022<\/strong> Actual cash value policies pay what a possession is estimated to be worth by your insurer at the time of the loss. For example \u2013 if your laptop cost you $799 a few years ago, its value \u2013 due to depreciation \u2013 would be less today because of age and normal wear and tear. The amount the insurer calculates will determine how much he pays you for the loss.<\/p>\n\n\n\n

\u2022<\/strong> Replacement-cost coverage is the way to go \u2013 because it pays out the item\u2019s equivalent cost. In other words, if you were to go out and get a similar laptop today \u2013 your insurer would reimburse the cost of the original computer to replace the one you lost in the fire. However, since this coverage has a higher payout from the insurer, you can expect it to also carry a higher premium.<\/p>\n\n\n\n

3.<\/strong> Renters insurance policies typically cover more than your lost property. For instance \u2013 if you and your family are displaced because your residence is inhabitable for a covered event, such as fire, the policy should also provide payments for living expenses.<\/p>\n\n\n\n

4.<\/strong> Liability is another major area of coverage. Generally, policies include up to $100,000 liability coverage in case someone enters your apartment or rented home and trips on a rug, resulting in an injury, or your dog bites a guest. Most experts recommend stretching coverage to at least $300,000 worth of protection.<\/p>\n\n\n\n

5.<\/strong> Catastrophes are just that. They are unexpected and can be devastating. The list of catastrophes and circumstances that are more than likely to be covered by renters insurance is a rather lengthy one. Events can be common, such as fire, vandalism, and theft \u2013 as well as burst pipes and even riots.<\/p>\n\n\n\n

But, if you live in a flood-prone area, you\u2019ll need separate coverage, because flooding is not covered.<\/p>\n\n\n\n

When shopping for renters insurance, make sure you ask questions of potential insurers \u2013 so you know ahead of time what you\u2019re paying for \u2013 actual cash value or replacement cost. Being aware of what your policy covers and doesn\u2019t cover will pay off in the long run.<\/p>\n\n\n\n

If you\u2019re not currently insured, stop putting it off. Find the best renters insurance rates by getting a free renters insurance quote<\/a> today!<\/p>\n\n\n\n

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You\u2019re in your new apartment when, suddenly, the smoke alarm goes off. There\u2019s a fire next door and you\u2019re about to lose everything. Luckily, your renters insurance will soften the blow by replacing your wide screen plasma TV or other furnishings. But, what if you\u2019re not covered or you just haven\u2019t gotten around to getting renters insurance? […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[51],"tags":[],"class_list":["post-302","post","type-post","status-publish","format-standard","hentry","category-renters-insurance-basics"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.insureone.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/302"}],"collection":[{"href":"https:\/\/www.insureone.com\/knowledge-center\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.insureone.com\/knowledge-center\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.insureone.com\/knowledge-center\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.insureone.com\/knowledge-center\/wp-json\/wp\/v2\/comments?post=302"}],"version-history":[{"count":7,"href":"https:\/\/www.insureone.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/302\/revisions"}],"predecessor-version":[{"id":4482,"href":"https:\/\/www.insureone.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/302\/revisions\/4482"}],"wp:attachment":[{"href":"https:\/\/www.insureone.com\/knowledge-center\/wp-json\/wp\/v2\/media?parent=302"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.insureone.com\/knowledge-center\/wp-json\/wp\/v2\/categories?post=302"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.insureone.com\/knowledge-center\/wp-json\/wp\/v2\/tags?post=302"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}