Do you rent your home? If so, you’re not alone. According to the National Multifamily Housing Council, 44 million households are renters. However, many people are unprotected since 59% of renters don’t have insurance. This means that if there’s a fire or other unforeseen event, renters could lose everything, and many wouldn’t have the means to replace these items. There’s good news, though. Renters insurance is very affordable and can provide protection in the event of a loss or liability claim.
If you’re one of the tens of millions of Americans who don’t have renters insurance, take time to learn more about this coverage and why you should purchase a policy.
What Is Renters Insurance?
Renters insurance is a policy that offers financial protection from covered losses when you’re living in a rented property, such as an apartment, house, or condo. Some of these covered losses may include:
- Fire and smoke
- Theft and vandalism
- Lightning
- Water damage (e.g., burst pipe)
- Falling objects
- Weight of ice, snow, or sleet
- Mold
- Explosions
However, renters insurance doesn’t cover damage from floods or earthquakes. You must purchase separate insurance policies if you want coverage from these perils.
Is Renters Insurance Required?
No, renters insurance is not required by law. However, landlords and property management companies can legally require tenants to carry a renters policy as part of the leasing agreement. The reason is that landlords want you to be insured to help lower their liability and prevent possible disputes — e.g., if your belongings are damaged while on their property.
What Does Renters Insurance Cover?
A standard renters insurance policy may offer four kinds of coverage that help protect you, your belongings, your guests, and your living arrangements following a covered loss. Here’s how each type of coverage works:
Personal Property
Personal property coverage provides financial reimbursem*nt to cover your lost or damaged belongings in the event of a covered loss, such as fire, theft, or water damage. Examples of these belongings include clothing, furniture, appliances, and electronics. If you have highly valuable items — e.g., jewelry, vintage instruments, antiques, fine art, etc. — you may want additional personal property coverage to protect these valuables.
Liability Protection
Liability protection provides financial protection if you cause bodily injury or property damage to others due to a covered incident — either on the rental property or elsewhere. For example, suppose your child accidentally breaks your neighbor’s window, or your dog bites someone at a nearby park. In that case, you might avoid paying out of pocket for these incidents — up to your coverage limits.
Guest Medical Protection
Guest medical protection pays medical bills for your guests who accidentally injure themselves while on your rented property. For example, if your guest trips and falls while walking down your stairs, guest medical protection can help cover their medical expenses.
Additional Living Expenses
Additional living expenses help reimburse you for the costs you incur for maintaining a standard of living if your home becomes uninhabitable due to a covered loss. These expenses include hotel stays, meals, storage unit rentals, laundry, and more. Be sure to keep your receipts for your insurance adjuster.
6 Reasons Why You Should Have Renters Insurance
Here are some of the reasons why you should have renters insurance:
Landlord Insurance Won’t Cover You
A common misconception is that renters insurance is unnecessary if your landlord already has insurance for the property. Unfortunately, your landlord’s insurance policy will not cover any of your personal belongings in the event of a loss, and it won’t provide liability protection if a lawsuit is brought against you. Although you may not be responsible for repairing the rental property in the event of a covered loss, there’s always a chance your possessions and valuables will need to be replaced if they’re damaged or stolen.
It’s Fairly Affordable
According to NerdWallet, the national average for renters insurance in 2023 is $179 per year or $15 per month. Your actual cost will depend on several factors, such as the amount of coverage you need, the type of coverage you choose, the amount of your deductible, and where you live. However, renters insurance is still relatively affordable in the grand scheme of things. If you choose Mercury for renters insurance, you can get coverage for as little as $11 a month.
You Might Own More Valuables Than You Think
One reason you may not get renters insurance is that you don’t believe you have many valuables. But if you put together an inventory of all your belongings, you might discover that you own several valuables that are worth a lot of money — e.g., computers, shoes, furniture, etc. Ultimately, replacing these items by yourself may cost much more than leveraging renters insurance.
It Covers Your Belongings Away From Home
Renters insurance doesn’t protect your belongings when you’re at home. It also provides coverage when you travel or somewhere else other than your rental property. For example, if you travel on vacation and your laptop gets stolen, your renter insurance may reimburse you for this loss.
It Can Protect Your Finances
Let’s say you’re saving money for a down payment on a house or a new car. Then, while taking your dog on a walk, they bite a neighbor and sue you for bodily injury. A lawsuit can easily wipe out everything you saved up for, leaving you in a deep hole. Renter insurance can cover the legal and medical bills for the injured party up to your coverage limit, helping you not drain your entire savings.
You Can’t Control Your Neighbors
While you may do everything in your power to keep your rental property safe and intact, you can’t control what your neighbors do. For example, your upstairs neighbor may have left the oven on, and then you come home to a building on fire with all your belongings destroyed. Without renters insurance, you wouldn’t get reimbursed for anything. Play it safe and purchase a renters insurance policy to protect yourself from the unexpected.
How to File a Renters Insurance Claim
When you purchase renters insurance through Mercury, you can file a claim 24 hours, seven days a week. Submit a claim online or call our claims hotline at (800) 503-3724 to get started.
Conclusion
Renters insurance provides financial security to cover an extensive number of unexpected and unforeseen events and can be readily obtained for an affordable cost. Speak to a Mercury agent to learn more about your coverage options and eligible discounts.
Contact us for a fast, free quote today!
Mercury Team
The Mercury Marketing Team is made up of professionals in the fields of Content Creation, Public Relations and Social Media. The team works together to deliver professionally written and researched content to provide information for consumers.
Read More Articles by the Mercury Team
As a seasoned insurance professional with an in-depth understanding of the subject matter, I can confidently affirm the critical importance of renters insurance, a topic that resonates deeply with the safety and financial security of individuals occupying rented properties. My expertise in the insurance domain stems from years of practical experience, extensive knowledge of policy intricacies, and a commitment to fostering awareness about the significance of protective coverage.
Now, diving into the specifics of the provided article by the Mercury Team, let's break down the key concepts and insights:
Renters Insurance Overview:
Renters insurance is a financial safeguard for individuals residing in rented properties, encompassing apartments, houses, or condos. The policy offers protection against various covered losses, including:
- Fire and Smoke
- Theft and Vandalism
- Lightning
- Water Damage (e.g., Burst Pipe)
- Falling Objects
- Weight of Ice, Snow, or Sleet
- Mold
- Explosions
It's crucial to note that renters insurance does not cover damage resulting from floods or earthquakes, necessitating separate policies for these perils.
Is Renters Insurance Required?
Renters insurance is not mandated by law, but landlords and property management companies can legally require tenants to carry a renters policy. This requirement serves to mitigate landlords' liability and prevent potential disputes in case of damage to tenants' belongings while on the rented property.
Types of Coverage:
Renters insurance typically offers four main types of coverage:
-
Personal Property Coverage:
- Reimburses for lost or damaged belongings due to covered losses (fire, theft, water damage).
-
Liability Protection:
- Provides financial protection if the tenant causes bodily injury or property damage to others, either on the rental property or elsewhere.
-
Guest Medical Protection:
- Pays medical bills for guests who accidentally injure themselves on the rented property.
-
Additional Living Expenses:
- Reimburses costs incurred to maintain a standard of living if the rented home becomes uninhabitable due to a covered loss.
Reasons to Have Renters Insurance:
The article outlines compelling reasons to invest in renters insurance:
-
Landlord Insurance Limitations:
- Landlord insurance doesn't cover personal belongings or provide liability protection for tenants.
-
Affordability:
- Renters insurance is relatively affordable, with the national average in 2023 being $179 per year.
-
Valuables Coverage:
- Many individuals own more valuable items than they realize, making renters insurance a prudent choice.
-
Coverage Away from Home:
- Renters insurance provides coverage for belongings even when outside the rented property, such as during travel.
-
Financial Protection:
- Protects savings from potential legal and medical expenses resulting from covered incidents.
-
Unpredictable Neighbors:
- Coverage extends to events caused by neighbors, emphasizing the importance of being prepared for the unexpected.
Filing a Renters Insurance Claim:
The article concludes by explaining the process of filing a renters insurance claim through Mercury, highlighting the accessibility of the claims process—available 24/7 through online submission or a dedicated claims hotline.
In summary, renters insurance emerges as a crucial component of responsible tenancy, offering financial security and peace of mind in the face of unforeseen events. The Mercury Team effectively communicates the necessity of this coverage, combining professional insights with a commitment to consumer education.
