Renters or Tenants Insurance is a fundamental insurance coverage for anyone who rents an apartment as their primary residence. In the US there are more than 43 million renter-occupied units yet only 41% buy Renters Insurance according to an Insurance Information Institute poll. The reason for this gap is likely that a high percentage of renters are young people living on their own for the first time and they lack the financial resources and experience to understand how Renters Insurance truly benefits them. Both reasons are due to lack of information because the truth is that a typical Renters Insurance policy only costs from $10 to $25 per month and the coverage provided is essential to a renter’s financial protection.
WHAT DOES RENTERS INSURANCE COVER?
When we talk about Renters Insurance we are referring to a discounted, personal insurance package policy (most commonly an HO-4 Policy Form) available from all major insurance companies. The package includes four separate coverages:
What’s missing? A Renters Insurance policy is structured like a Homeowners Policy but minus Coverage A – Dwellings and Coverage B – Other Structures. They are not included in a Renters insurance policy because as a renter you don’t own and aren’t responsible to insure the apartment building or outbuildings. That is the responsibility of the Landlord.
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Renters Insurance policies vary somewhat from company to company and state to state. The coverage explanations and claim examples here are necessarily brief. All policies contain additional coverages, conditions, specific exclusions and limitations. Read your policy for complete information. For personalized coverage and a quotation for your individual insurance needs, you are invited to Contact Us at AMERICAN INSURANCE and speak to one of our helpful agents.
The content of FAQ articles are general in nature and are not intended as a substitute for professional legal, financial, or insurance counsel for individuals. Insurance coverage forms vary by issuing company and by state. For specific advice contact us.
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