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Do I Need Renters Insurance? 5 Questions to Ask Yourself

You moved in, unpacked, set up decorations and it’s beginning to feel more like home. Maybe you’re wondering, what am I missing? Well, perhaps nothing complements a nice, new apartment like renters insurance. While some landlords require renters insurance, some do not, leaving consumers to wonder if they actually need it at all. It’s a fair question, after all. Unlike homeowners insurance, you’re not actually insuring the structure so, then, what are you insuring? We’re here to help answer that and walk you through a few steps describing renters insurance and its importance.

What Is Renters Insurance?

The short answer — renters insurance protects you if something happens to your things while you’re in a rental. The longer answer? Renters insurance offers liability insurance to cover you if you, or a pet, cause damages to another person or the unit. It also covers your living expenses temporarily if you find yourself displaced due to unlivable conditions and it covers your things while you travel.

Yes! While you travel! Cool, huh? You can also customize your coverage to include diminishing deductible for renters, or electrical appliance coverage for your pricey gadgets

It’s doesn’t protect the structure of the building — your landlord has coverage for that — and only applies to the items you own. The television you’re watching, or the device you’re reading this on? They’re covered in case of fire, theft, water damage or a variety of other events your American Family insurance agent will describe for you. Along with that, your clothes, furniture, jewelry and almost anything else you own will be covered as well.

Is Renters Insurance Important?

Get savvy about the importance of renters insurance by asking yourself these five questions, and find out if this smart, affordable renters insurance coverage is right for you — we’re banking on yes.

1. How much are my valuables worth?

It’s crucial for a renter to take an inventory of all their possessions and record the approximate value before getting a renters insurance quote online. You’ve most likely acquired a good deal of belongings over the years, and when you calculate the value of your electronics, clothes, jewelry and even that uncomfortable futon — the result is probably more than you think. Try our renters insurance calculator to get a better sense of what it might cost to replace the valuables you work so hard for, and what it would cost to cover them with renters insurance.

2. Can I afford to pay out-of-pocket replacement cost for my belongings?

Now that you’ve added up what your valuables are worth, ask yourself if you have the money to cover the cost if anything were to happen to them. Renters insurance helps cover the costs to replace your belongings if they’re ruined from smoke damage, fire, theft, water damage or other unexpected incidents. It’s important to note that your landlord’s insurance won’t cover your belongings under these circumstances, so for a small price each month — often less than the price of a pizza  — give yourself some peace of mind that you’re being financially proactive and protected. Find out more about the cost of renters insurance.

3. Would I be able to afford lodging if I was temporarily displaced?

If there were a fire or some other event and you couldn’t live in your apartment, you’d need to make temporary living arrangements, like staying in a hotel. But those additional living expenses could add up and cost more than a month’s worth of rent! Another win for renters insurance — it’ll help cover the cost for lodging if you have to leave your apartment or other rental due to an unexpected event, up to your policy coverage limits.

You’ll simply file a claim with your insurance company, American Family, and leave the rest to us!

4. Do I travel a lot?

And by travel, we simply mean to work, school, the store, your neighbors, or sure, across the country — because renters insurance helps protect you and your things wherever you go. Leave your laptop unattended just long enough to have it stolen from the coffee shop down the road? Renters insurance covers that. A break in at the hotel room leave you without your clothing, electronics or other possessions? Renters insurance will cover that too!

Read more about renters coverage on the go.

5. Does my landlord require renters insurance?

You may come to discover that the place you finally found requires tenants to have renters insurance. Can a landlord require renters insurance? Yep, they can. Another key component of renters insurance is the liability coverage. That’s coverage for others in case you — or a pet — causes damage to the rental or another person. Landlords can also require this coverage to help prevent disputes if personal property is damaged or stolen from the unit. It’s coverage that protects you financially, along with your landlord.

Having renters insurance is more valuable than you thought, right? Check in with your American Family Insurance agent to find out more about adding this smart, affordable coverage. Our renters FAQs can help answer more questions you may have about why renters insurance is a good choice!

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Related Topics: Renters , At Home