Understanding the Benefits of Renters Insurance

If you’ve recently rented a new apartment, there’s a good chance your landlord or property manager discussed renters insurance with you. It might even be a mandatory part of your lease. But, especially if it’s your first time living on your own, you may be asking yourself: what does renters insurance even do, and more importantly, what does it cover?

Why do I need renters insurance?

Most people think renters insurance coverage is mainly for significant events that are related strictly to the apartment you’re renting. However, renters insurance is more than meets the eye, and it can cover a lot more than you might expect. Here are five surprising scenarios that can be covered with the right renters insurance.

Your stolen property is insured – regardless of where it is taken

Picture this: You’re doing some schoolwork on your laptop at a campus coffee shop. You go to the bathroom, but when you get back to your table, you find that your laptop has been stolen. Panic sets in. Not only have you lost your work for the day, but more importantly, you’ve lost your laptop — which isn’t cheap, especially on a student budget.

But, fear not. Stolen property is covered with most renters insurance. Within each renters insurance policy, you’re able to select what amount of personal property you’d like to have covered, and the insurance itself is there to cover the cost of repairing and/or replacing your belongings – including clothes, electronics, and more. As long as the cost of the stolen item falls within the personal property limits of your policy, you can sleep well at night knowing this will most likely be a covered loss – regardless of whether or not the actual theft occurred in your apartment.

Your ruined belongings are insured – even if you ruined them

You’re staying in on a Saturday when you unexpectedly spill an entire glass of red wine all over your new white couch cushions. Just like your laptop, a couch is a really expensive purchase — and not exactly one that you can swing to replace on a tight budget.

Luckily, if you have renters insurance – and you’re prepared for such spills by including this in your policy – the couch falls within your personal property limit and is insured. Furniture falls within the realm of personal property, and similar to stolen goods, this is a cost that would be handled through having a renters insurance policy. Depending on the carrier and their claims process, all you’ll need to do is provide an explanation as to the damage caused to your couch and your insurance company could help cover the cost to either repair or replace the couch.

Your neighbor’s property damage is insured, too

You might be playing catch outside with a friend when they mistakenly throw the ball directly at your neighbor’s window, shattering it completely and causing damage inside their home.

Aside from teaching your friend how to better aim their throw, this situation could potentially cause a lot of unwanted stress. But if you have a renters insurance policy, you’re in luck. In addition to the personal property coverage, most renters insurance policies include a specific liability coverage amount that is meant for situations like this. In the event that you’re legally on the hook for whatever damage was caused, the liability coverage of a renters insurance policy is meant to cover these circumstances. Most policies will start at $100k of liability coverage.

Catastrophes are covered

You try cooking for the first time and not only did your meal come out terribly, but you took your eye off the pan for five minutes and you accidentally started a fire in the kitchen. There is significant damage to the apartment, all caused by your experimental cooking.

For starters, you might look into cooking classes. As for the damage that you caused to the apartment? No need to worry – if you have a renters insurance policy at the time of the mishap, your liability coverage can probably help cover the cost of whatever damage you caused, up to the limit amount on your policy. The liability coverage portion of a renters insurance policy is meant to help make sure you’re prepared for the unexpected.

Hotel stays are insured

A forest fire has damaged your apartment, leaving your home uninhabitable. You have no choice but to leave and find another residence until your rental is repaired.

This is an extreme situation – but luckily, most renters insurance policies include the option for additional living expenses. What does this mean exactly? If your apartment becomes uninhabitable due to a covered loss, your renters insurance policy will help cover the cost for your temporary housing. For instance, if your landlord tells you that it’s going to take two to three weeks for repairs after the fire, you can check into a hotel, and you’ll sleep well at night knowing that the cost is likely covered until you’re able to safely return to your apartment.

Having peace of mind

These are just a few examples of the ways that having renters insurance can give you peace of mind in the event of accidents or other mishaps. College is often a time of living on your own for the first time, and it’s natural to make some mistakes throughout the journey. But with renters insurance, you can feel protected knowing that you’re off the hook from some of the most common scenarios that renters face as they adjust to a new campus.

For more information on renters insurance tailored for students, check out SURE.