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If you're renting an apartment or home, you'll need an insurance policy to cover your belongings. Your landlord's property insurance policy covers losses to the building itself; whether it's an apartment, a house, or a duplex.

Your personal property and certain liabilities, however, are covered only through a renter's insurance policy that you, as a tenant, have to find and pay for. Statistics show far fewer renters have insurance than homeowners. In 2018, 95% of homeowners have a homeowner's insurance policy, only 41% of renters have renter's insurance.

Why do so few renters have insurance? One explanation is that many people incorrectly assume they are covered by their landlord's policy. Another reason is that people underestimate the value of their belongings. If you add up the value of just your clothing and electronics, it probably wouldn't take long to get into the thousands of dollars.

One more often overlooked reason is liability: If someone is injured in your house—a friend, neighbor, or the pizza delivery person—they could sue you. Even if you thought you didn't need insurance, here are six good reasons why you should get a renter's insurance policy.

Renters Insurance Most renters think that if anything happens to their belongings or guests inside their rental property that they’ll be covered financially by their landlord. Nope, not true. It’s up to the renter to buy insurance.

What is renters’ insurance?

Why do you need renters’ insurance?

Let's say. After saving for months, you finally bought a new 65-inch 4K Roku-smart television. You’ve been enjoying it for weeks when you notice a water spot on the ceiling where water has been dripping onto the top of your new TV all day while you’ve been at work. You hold your breath, turn on the TV and . . . nothing. Time to panic?

What does renters’ insurance cover?

You’re also covered if your friend slips on that puddle that’s been collecting from the water droplets that bounced off your TV. Whew!

Good Reasons to Get Renter's Insurance

1. It's Relatively Affordable

The average renter's insurance policy costs $15 to $30 a month in 2020, according to the National Association of Insurance Commissioners (NAIC).

Your actual cost will depend on factors, including how much coverage you need, the type of coverage you choose, the amount of your deductible, and where you live.

2. It Covers Losses to Personal Property

A renter’s insurance policy protects against losses to your personal property, including clothes, jewelry, luggage, computers, furniture, and electronics. Even if you don't own much, it can quickly add up to a lot more than you realize; and a lot more than you'd want to pay to replace everything.

Renter's policies protect against a surprisingly long list of perils. A standard HO-4 policy designed for renters, for example, covers losses to personal property from perils including:

• Fire or lightening
• Windstorm or hail
• Explosion
• Riot or civil commotion
• Aircraft
• Vehicles
• Smoke
• Vandalism
• Theft
• Volcanic eruption
• Falling object
• Weight of ice, snow, or sleet
• Accidental water overflow or stream
• Sudden and accidental tearing apart, cracking, burning, or bulging of certain household systems
• Freezing
• Sudden and accidental damage from artificially generated electrical currents

Losses resulting from floods and earthquakes are not covered in standard policies. A separate policy or rider is required for these perils. In addition, a separate rider might be needed to cover wind damage in areas prone to hurricanes.

You may have to pay a deductible on your policy before coverage kicks in.

3. Your Landlord Might Require It

Your landlord's insurance covers the structure and the grounds, but not your belongings. A growing number of landlords require tenants to purchase their own renter's insurance policies, and they'll expect to see proof.

If you need assistance finding or obtaining coverage, your landlord may be able to help. This could be the landlord's idea or an "order" from the landlord's insurance company. The idea is that if the tenants are covered, some responsibility can be shifted away from the landlord.

4. It Provides Liability Coverage

Liability coverage is also included in standard renter’s insurance policies. This provides protection if someone is injured while in your home or if you (or another covered person) accidentally injure someone. It pays any court judgments and legal expenses up to the policy limit.

Most policies provide at least $100,000 of liability coverage and a smaller amount for medical-payments coverage. You can request (and pay for) higher coverage limits if necessary.

Renter’s insurance policies don't cover losses caused by your own negligence or intentional acts. For example, if you fall asleep with a lit cigarette and cause a fire, the policy most likely will not cover the damage.

5. It Covers Your Belongings When You Travel

Renter's insurance covers your personal belongings, whether they are in your home, car, or with you while you travel. Your possessions are covered from loss due to theft and other covered losses anywhere you travel. Check your policy or ask your insurance agent for details on what constitutes "other covered losses."

6. It May Cover Additional Living Expenses

If your home becomes uninhabitable due to one of the covered perils, your renter's insurance policy may cover “additional living expenses,” including the cost associated with living somewhere else temporarily, food, and more. Check your policy to find out how long it will cover additional living expenses and if it caps the amount the company will pay.

Is Renter’s Insurance Really Worth It?

Yes. If you can afford it, renters insurance is usually worth it. It will protect your belongings, provide liability coverage, and may cover your personal items when you travel. Renter's insurance protects you from a long list of perils, as well.

What Are the 3 Things Covered by Renter’s Insurance?

Renter's insurance usually covers a long list of items, but three of them are clothing, electronics (including your computers and tablets), and furniture.

How Much Does Renter’s Insurance Cost?

It could cost you as little as $15 to $30 a month, according to the National Association of Insurance Commissioners.

The Bottom Line

Renter's insurance provides coverage for your personal belongings, whether in your home, car or with you while you're on vacation. In addition, renter's insurance provides liability coverage in case someone is injured in your home or if you accidentally cause injury to someone.

Be sure you understand what your policy covers, and ask your agent about available discounts, deductibles, and coverage limits. For example, be sure you know whether your insurance provides replacement cost coverage (RCC) for your personal property or actual cash value (ACV).

At Angel Family Insurance we are committed to helping you find the right insurance coverage at the best price. We are an independent insurance broker with options for you.

Our experienced, local insurance agents, take the time to assess your individual needs and develop a policy that fits your budget.