House Grail is reader-supported. When you buy via links on our site, we may earn an affiliate commission at no cost to you. Learn more.

How Does Renters Insurance Work? (Reasons & FAQs)

Insurance for renters and tenants Call about renters insurance

Perhaps your landlord just told you that you needed renters insurance, or a friend was shocked when you told them you didn’t have it. Either way, it’s time for you to figure out what exactly renters insurance is.

Renters insurance covers all your belongings inside your home in case something happens to it. Not only that, but it provides you with liability coverage if something happens to a guest inside your home. It’s an absolute necessity if you don’t own your home, and it’s available for a surprisingly affordable price.

We’ll break down everything you need to know about this valuable coverage here.

house divider

How Does Renters Insurance Work?

Renters insurance is one of the more straightforward insurance policies out there. When you get renters insurance, you’re getting coverage for everything inside the home you’re renting. Renters insurance does not cover the building itself.

Not only that, but renters insurance will provide you with liability coverage for anything that might happen inside the home. For instance, if you own a dog and they bite someone and that person sues you, renters insurance should provide you with the liability coverage you need for protection.

You make your monthly payment, and if something happens to your stuff or to someone inside, your home renters insurance comes in and covers a portion of the bill for you.

Renters Insurance
Image Credit: Vitalii Vodolazskyi, Shutterstock

Do You Need Renters Insurance?

It depends on your current renter’s contract and the state you live in whether you need renters insurance, but even if you don’t need it, we highly recommend getting it.

Renters insurance typically doesn’t cost much, and it provides you with a ton of protection in case something happens. The last thing you want is for a tragedy to strike and for you not to have any insurance, thus forcing you to start over from scratch.

house divider

The 5 Reasons Why You Want Renters Insurance

If you’re renting your home, we highly recommend getting renters insurance. Below we’ve highlighted three of the best reasons you should get renters insurance, even if you don’t need it in your area.

1. It Doesn’t Cost Much

Image Credit: geralt, Pixabay

If you’re thinking about skipping renters insurance because you don’t want an extra monthly bill, you should consider getting a few quotes. The average renters insurance policy in the United States only costs about $15 a month, and often, you can bundle it with other plans to lower the bill even further. That’s a small amount to pay for the peace of mind and coverage that comes with a renters insurance policy.

2. It Covers All Your Personal Property

If your home went up in a fire, a flood, or a thief comes in and steals everything, do you have the coverage you need? With renters insurance, you’ll have to pay the deductible, but then they’ll cut you a check so you can replace your belongings. Instead of being in an unmanageable tight spot, you can go out and replace the stuff you had in your home.

3. You Often Get Coverage While Traveling

Young family with children in car
Image Credit: Africa Studio, Shutterstock

If you dive into the “other coverages” that come with most renters insurance policies, often, you’ll get protection for your personal belongings while traveling. This means if someone steals your stuff while you’re on a trip, renters insurance can help you replace your belongings. Not every renters insurance has this coverage option, but many do.

4. It Gives You Liability Coverage

When you invite people into your home, you’re taking a risk whether you realize it or not. Maybe they’ll burn themselves on your stove, they might trip and fall and hit a shelf, or your dog might just not like them and take a chunk out of their shin. This all equals a bad day for your guest, but it turns into a bad day for you when they decide to sue you.

In this unfortunate situation, renters insurance can bail you out. Renters insurance will provide you with the coverage you need so that it doesn’t completely drain your bank account.

5. You Get Coverage for Additional Living Expenses

Close-up Of A Person's Hand Filling Renters Insurance Policy Form
Image Credit: Andrey_Popov, Shutterstock

Renters insurance policies often come with all kinds of perks you might not be aware of. Some renters insurance policies will cover expenses if you need to leave the home while they make repairs, and others will even replace groceries in the event of a power outage.

Take a look at the additional coverages in your policy and some of the coverages there might just surprise you!

Looking for home RENTERS insurance?

Lemonade offers some of the best insurance plans you can find on the market today!

Final Thoughts

Renters insurance is one of the simplest yet most important insurance policies you can get if you rent your home. It’s available for a super affordable monthly payment and gives you the protection you need if something happens to your stuff.

If you don’t have renters insurance, we highly recommend getting a few quotes today and getting the coverage you need.

See Also:

Featured Image Credit: Milaspage, Shutterstock


Related posts

OUR categories

Project ideas

Hand & power tools