Is Renters Insurance Required?

When Is Renters Insurance Required?

(And where to get it)

Is Renters Insurance Required

So you're going to be a renter? With all new journeys also come new responsibilities, and one of those is renters insurance. How do you know if you need renters insurance for your new pad?

Well, your independent insurance agent can help sort that out. They can also provide you with the coverage you need for the price you need it at. 

What Is Renters Insurance?

A renters insurance policy is similar to a homeowners insurance policy, except without all the extras that you don't need because you don't actually own the property. 

Key renters insurance coverages:

  • Personal liability: This is coverage for your negligence, as in bodily injury or property damage.
  • Personal property (aka personal belongings coverage): This is coverage for all your non-permanently attached items such as furniture, clothing and more. 
  • Additional living expenses: Coverage if you have to move out of your rental home because of a claim. This will help pay for that stay.
  • Theft and vandalism: Coverage for property that is stolen or damaged due to theft or vandalism.

How to Know If You Need Renters Insurance

Simple, you need it. If you are renting a single-family residence, an apartment, a condo, a mobile home or a tiny home, really any residence you are renting will need renters insurance. In fact, the majority of landlords will require this of you in order to offer a lease. But even if it's not a requirement of the owner, it's just plain good sense to have. 

If you don't have renters insurance, when a storm comes whipping through and demolishes all your personal effects, you'll be wishing you had it. If your landlord requires a renters policy from you prior to signing the lease agreement, then it's a good idea to know who to call.

Things Your Independent Insurance Agent Should Be Asking You

When you are obtaining renters insurance, or any insurance for that matter, your agent should be asking you probing questions to make sure you are covered properly, and all your assets and belongings are accounted for. If they're not, then you may want to look for a more detailed independent insurance agent. 

Questions your agent should ask about your renters insurance:

  1. What address will you be renting?
  2. What dollar amount do you want listed to replace your personal belongings?
  3. How old is the property you will be renting?
  4. What limit of personal liability were you wanting?
  5. Do you want to bundle your renters and auto insurance for added savings?
  6. Does your landlord have adequate coverage on the property themselves? 
  7. Is there anything that your landlord is not covering with insurance that you would need coverage for yourself?

Certificates of Insurance As They Pertain to Renters Insurance

Now, you may see something like a sample request form from your landlord in order to get proof of insurance, if they are requiring you to have insurance. This proof of insurance is called a certificate of insurance, and it will basically provide an insurance preview showing that you'll get insurance, what coverages you'll have, your policy term effective dates, the and carriers that will write your policies.

How Much Does Renters Insurance Cost?

Renters insurance costs vary just like anything else. If you haven't noticed by now, no two people and circumstances are the same. If you've ever been chatting up your neighbor friend about how much they pay for their renters or auto insurance, you'll notice that it probably doesn't match what you pay. The answer to this is simple, your insurance is like your credit score, individualized and completely specific. 

The best way to find out what it will cost you for renters insurance is to discuss your specifics with your independent insurance agent. They will know which carriers to present your situation to, finding you the best premiums and coverage.

Benefits of an Independent Insurance Agent

Independent insurance agents have access to multiple insurance companies, ultimately finding you the best coverage, accessibility and competitive pricing while working for you. Find an independent insurance agent in your community here.

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TrustedChoice.com Article | Reviewed by Candace Jenkins

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