What is renter’s insurance and how is it different from homeowner’s insurance?
Renter’s insurance is an insurance policy that covers the contents of a leased property (generally, any livable structure with a kitchen and bathroom). There are even renter’s insurance policies for houseboats, RVs, and campers. Homeowner’s insurance, on the other hand, covers loss and damages to the property itself and accidents that may occur within the home or on the property. To simplify, the landlord’s insurance covers the walls out and the tenant’s renter’s insurance covers everything within the walls.
There are a few different types of coverage when it comes to renter’s insurance: contents coverage, liability to landlord coverage, and loss of use coverage. Many property managers will require all three as contents coverage protects a tenants belongings, liability protects the property in case of damage, and loss of use protects both tenant and landlord in the case that the property becomes uninhabitable due to a covered incident.
What does renter’s insurance really cover?
A simple policy protects personal contents against fire, theft, non-flood water damage, and any other incidents listed on the policy. A lot of policies will include items stored on the property like vehicles. Most renter’s insurance policies do not cover water damage as this applies to liability coverage. Renter’s liability insurance protects the renter if someone were to be injured in their home due to negligence. Liability to landlord insurance covers structural loss caused by tenant negligence.
How much does renter’s insurance cost?
The average cost of renter’s insurance throughout the US is around $15 per month, though prices vary greatly depending on location and coverage. Cost may be affected by: geographic location, crime rates per capita, regional claim related costs, property condition, coverage, whether the policy is bundled with other insurance policies like auto insurance, bulk buyers, credit ratings, and number of renters covered (if spouse is included)