Your apartment is more than just a home for you, it’s home to all of your belongings from electronics, home furnishings, jewelry, clothing and other sentimental items. But what happens if there’s a fire or other unexpected event? Whose responsibility is it to replace the items in your apartment? While a landlord generally covers any structural damage, they’re not liable for your personal property.*
What is Renters Insurance?
Renters insurance covers the cost of replacing your belongings in the event of theft, vandalism, fire and certain other unforeseen events. Depending on your policy, renters insurance may also cover liability, legal costs and medical expenses should you or a guest get injured in your apartment.
Why is Renters Insurance Important?
Renters insurance protects your personal property from unexpected circumstances, just like when you own a home or car and have insurance in case of accidents. You may not think your belongings are worth much, but if you start adding up the cost of items in your apartment you’ll likely find you have tens of thousands of dollars’ worth. As an added bonus, belongings that fall under your renters insurance may be covered even when you’re away from home (i.e. if your laptop gets stolen from your car).
How Expensive is Renters Insurance?
Renters insurance is surprisingly affordable. The average national cost is $197 a year, or $17 a month. However, your rate will depend on factors like credit score, where you live and the amount of coverage you need. You can also get a better rate if you have multiple policies (like car insurance) with the same insurance company.
What Does Renters Insurance Cover?
While policies vary, your typical renters insurance policy will often cover your belongings in the event of:
- Theft or vandalism
- Fire or lightning strikes
- Smoke damage
- Water damage from burst pipes, air conditioning and water heater
- Electrical appliance malfunction damage
- Wind and hail
- If your apartment burns down and remains uninhabitable, your renters insurance may even cover the bill for temporary housing and food.
What Does Renters Insurance Not Cover?
- Have termites or mice? Call your landlord and get the issue taken care of as soon as possible. Renters insurance won’t cover property damage as a result.
- While lightning and windstorm damage is covered, you’ll need to add additional coverage for natural disasters like earthquakes and floods.
- Do you have a lot of valuables at your place? There’s a limit on the amount of coverage for jewelry and electronics, so consider taking out extra insurance coverage for more expensive items.
The nominal cost for renters insurance is worth it for your peace of mind, and your apartment community may require renters insurance per your lease agreement. Check with your landlord or property manager before you make the purchase.
*The information provided in this blog is for your convenience and is not intended to be legal advice; The Irvine Company Apartment Communities (ICAC) does not guarantee or provide assurances of any aspect of the information.
