If you rent an apartment or house, it’s a good idea to have renters insurance to protect your belongings. A renters policy is among the cheapest insurance policies available, but many renters do not have insurance.
Insurance for renters covers their belongings in case their unit is damaged or destroyed because of weather, fire or some other covered event.
Renters insurance is for anyone who rents rather than owns property. The owner of the property carries insurance to cover the structure in case of fire or weather damage or theft as well as things in individual units he or she owns, such as appliances, but that insurance does not cover the property of the people living in the space. If you don’t have a renters policy, none of your property will be covered.
A renters policy works just like other types of property and casualty insurance. If there is a covered event that causes damage, you will file a claim, and your insurer will reimburse you for losses minus whatever you owe as a deductible.
Renters policies are all pretty standard, although you may be able to customize yours somewhat. For example, all policies will cover your belongings, and most offer coverage to pay for you to live somewhere else if your rented space is rendered unlivable. You also may be able to add an element of personal liability coverage to your policy.
The major benefit of a renters policy is that your personal belongings are protected from fire and weather damage and theft. This is especially important when you rent an apartment because you have no control over what the other residents of the building do. If your policy has coverage to pay for you to live somewhere else if necessary, that is another big benefit.