Renters and Condo Insurance (2024)

FAQs

What are 2 reasons people typically do not get renters insurance? ›

Many renters don't purchase renter's insurance, either because they don't think it is necessary or believe they are covered under the landlord's policy. The cost of renter's insurance is relatively low.

In general, condominium insurance covers the building that you live in, any common areas shared by all residents, and your personal belongings within the unit itself. Renters insurance, on the other hand, only covers your personal property.

Renters insurance covers personal property, personal liability, medical payments and additional living expenses or loss of use, up to the limits of your policy. Learn more about what renters insurance covers and the types of renters insurance coverages.

Why would someone want to have renters' insurance if their building owner has insurance? The building owner's insurance only covers the building structure. Renter's insurance covers your personal property.

Flooding, earthquakes and sinkholes are all examples of natural disasters that are not covered by a typical renters insurance policy. All three of these events can easily damage your personal property, so you should buy additional coverage if you think you're at risk.

Renters insurance is an insurance policy that can cover theft, water backup damage, certain natural disasters, bodily injuries and more in a rented property. If you rent an apartment, home or even a dorm, renters insurance is recommended for protecting your space and belongings in the event of a covered accident.

The two policies differ because condo insurance is for those who own their condominium like homeowners insurance while apartment insurance is for those who rent their home from somebody else, such as a landlord. Keep in mind that this policy doesn't cover damage to the building's structure.

What is the difference between an HO6 (condo) and HO4 (renters) insurance policy? The HO6 and HO4 both cover your personal property and personal liability, but only the HO6 condo policy has additional Coverage A for the interior finishing of the unit. If you own the condo, you need the HO6.

Renters insurance will not cover a broken window in your own residence, but the personal liability coverage in your policy will cover damage to someone else's window if it's determined you're the liable party.

Does renters insurance cover ceiling collapse? ›

Renters insurance might cover some of your personal property should the ceiling collapse in the home or apartment you rent. It should also cover additional expenses incurred while your place is undergoing repairs. However, it will not likely cover any injuries you sustained in your own rental.

Typically, your renter's policy will not cover your hotel due to your air conditioner being out. A broken AC is not considered the loss of use of the dwelling (home) — they typically only pay for other accommodations when the entire dwelling is uninhabitable.

If you're looking into homeowners insurance for the first time, you'll notice that the cost of homeowners insurance may be more expensive than renters insurance. This is because a homeowners policy protects your home's structure and will typically offer more coverage than a renters policy.

Renters insurance protects your belongings from loss, damage, or destruction following things like burglaries, fires, tornadoes and other covered events. Plus, renters insurance also protects your liability (and your money) if someone is injured at your rental home or apartment.

Insurance premiums vary based on the coverage and the person taking out the policy. Many variables factor into the amount that you'll pay, but the main considerations are the level of coverage that you'll receive and personal information such as age and personal information.

In fact, according to the Insurance Information Institute, 63% percent of renters don't have renters insurance, maybe because they think it's too expensive, or unnecessary, or they believe they're covered by a landlord or roommate's insurance policy.

45 million: Across the United States there are roughly 45 million renter-occupied homes. 25 million: Of the 45 million tenant occupied homes, more than 25 million of them have renters insurance. 15%: The number of renters with renters insurance has increased 15% between 2018 and 2020.

If you don't have renters insurance, you won't have coverage for your belongings if they are stolen or damaged by problems like vandalism and fire. That means you'll have to pay out of pocket to replace or repair your items if they are damaged or stolen.