How Much Renters Insurance Do I Need?

You moved into your first apartment and have purchased all of the basic necessities such as brand new furniture, a 50 inch flat screen TV and a state-of-the-art computer. You may think you are set, but there could be something you are missing – renter insurance.

Apartment insurance is something that is frequently overlooked. In fact, according to the Insurance Information Institute nearly 95% of homeowners have homeowners insurance, while only 37% of renters have rental insurance. You may think that renters insurance is an unnecessary expense, but in fact it can be quite affordable. It will also save you a great deal of money in the event of an unfortunate incident that affects your property or your assets.

What Does Renters Insurance Cover?

Renters insurance typically includes three types of coverage:

  1. Personal property coverage. This coverage would help to pay for losses if your property is stolen or damaged.
  2. Liability coverage. If a guest was injured in your home, this coverage would help pay for the individual’s medical bills as well as any legal fees if they subsequently sue you. It would also protect you if you accidentally cause damage to someone else’s property.
  3. Additional living expenses. This coverage applies if you are no longer able to live in the apartment or home you are renting because of something like a fire or flood. Additional living expenses coverage will help pay for your hotel bill or extra money that you spend on necessities such as food as a result of the situation.

How Do I Determine How Much Apartment Renters Insurance I Need?

Like any other insurance policy, renters insurance has a coverage limit, which is the total amount your insurance company will pay out in the event of a covered claim. Understanding the amount of coverage you need can take some time, but is worth the effort. You want to ensure you are fully-protected and that you are not overpaying for coverage you don’t need. There is a different process for determining how much personal property coverage you need and how much liability insurance you need.

  • For personal property coverage, begin by conducting a home inventory. Make a list of everything you own and include details about how long you owned them, what you originally spent on them and what they are likely worth now. Receipts and photos of the items can be an asset in the event of a claim if your property is stolen or destroyed.
  • For liability coverage, it is important to consider all of your assets and to keep in mind the high costs that come with medical bills and legal fees in the event of an incident. A standard renters policy offers about $100,000 in liability coverage, but you may want to consider quotes for increased limits.

What Isn’t Covered by a Standard Renters Insurance Policy?

When it comes to expensive items such as art or jewelry, many renters insurance policies have sub-limits on what they will pay for an individual item. Sub-limits typically range from $2,500 to $5,000. If you have any expensive items such as a $7,000 engagement ring you may want to add supplement coverage for that particular item as you won’t be fully protected for that specific item.

How Do You Determine the Best Renters Insurance for You?

Once you have determined the coverage limits you would like to have you can begin to get renters insurance quotes from different companies. One major thing to be mindful of as you compare renters insurance policies is whether they will reimburse you for “fair market value” or “replacement value.” Replacement value policies will pay for you to replace your items with new ones, while fair market value policies consider the current worth of your existing property.

How Much Does Renters Insurance Cost?

If you want to protect your assets without breaking the bank, it is certainly possible to find a cheap renters insurance policy. According to the National Association of Insurance Commissioners, a renter insurance policy can cost as little as $15 to $30 per month. This amount seems nominal compared to the amount you would have to spend to replace all of your belongings in your apartment!

If you’re ready to purchase renters insurance in California, Cost-U-Less can help. Request a free renters insurance quote online or over the phone at 800-390-4071. We compare rates from top insurance companies to ensure you get the best coverage and lowest price.