5 Reasons Why You Need Renters Insurance | McGriff (2024)

Do you rent your home or apartment? 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.

Check out these top five reasons why you need renters insurance.

1. Protection for your personal belongings.

It’s a good idea to take inventory of your belongings. If the worst happened, how would you replace the costly electronics you own—things like smartphones, smartwatches, laptops, tablets, TVs and gaming systems? What about the hundreds or thousands of dollars’ worth of shoes and clothes you have? And what’s your furniture worth—sofas, tables, chairs, beds, mattresses and recliners? All of these personal belongings, and more, can be covered by a renters insurance policy.

2. Liability coverage if someone is injured at your rental home or apartment.

What would you do if a visitor got hurt at your place, and you couldn’t cover their medical bills? What if that person sued you—how would you cover the court costs? Consider these possibilities, which could happen to any renter:

  • Your dog bit someone’s child.
  • You had some friends over for a party, and things got unruly.
  • Someone tripped and fell inside your apartment.

With a renters insurance policy, you can rest easy knowing you have coverage to protect yourself and your assets (up to the stated liability limit in your policy).

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3. You’re not covered by your landlord’s insurance.

Many tenants mistakenly believe their landlord’s insurance will protect them, but that’s just not the case. As the owner of your rental home or apartment building, the landlord has a form of homeowners insurance that covers the physical structure itself, but it doesn’t cover your belongings inside.

4. Coverage for additional living expenses.

If your rental home or apartment is damaged and uninhabitable while repairs are being made, most renters insurance policies include coverage for the additional expenses you’ll incur during that time. For example, if your monthly rent is $900, but you can’t live in your apartment for the next month while it’s being repaired, then your renters insurance policy would cover the additional living expenses beyond $900 that you incur while staying in a hotel, eating meals out, etc.

5. It’s affordable.

Across the United States, premiums for renters insurance average between $15 and $30 per month, depending on the location and size of the rental unit and your possessions. Disclosure 1 1 National Association of Insurance Commissioners, “For Rent: Protecting Your Belongings With Renters Insurance,”https://www.naic.org/documents/protecting_your_belongings_with_renters_insurance.htm(opens in a new tab) , accessed Jan. 3, 2020. To put that into perspective, you could insure all of your belongings (and your own liability) for about the cost of two movie tickets.

5 Reasons Why You Need Renters Insurance | McGriff (2024)


5 Reasons Why You Need Renters Insurance | McGriff? ›

Renters insurance can help you repair or replace property after loss due to many types of damage or theft. It can also provide coverage for an accident at your residence. Policies usually have very affordable annual premiums.

Why do people need renters insurance? ›

Renters insurance can help you repair or replace property after loss due to many types of damage or theft. It can also provide coverage for an accident at your residence. Policies usually have very affordable annual premiums.

What are the 3 things renters insurance provides you with and what purpose does each of them have? ›

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.

What is the main reason someone would want to have and need to have renters insurance Quizlet? ›

Renter's insurance covers your personal property. What is the purpose of liability coverage on a renter's insurance policy? It covers unintended damage and accidents in the rental.

Why do landlords want you to have renters insurance? ›

Without a renters policy in place, damage or injury from a gathering gone wrong could be your responsibility. Renters insurance can help protect a landlord against tenant negligence. Tenant negligence can take many forms, ranging from a kitchen fire while cooking to water damage from an overflowing tub.

Is it worth having renters insurance? ›

Renters insurance coverage is almost always worth it. It is much more affordable than other policies, including home or auto insurance, and provides valuable financial protection. Even if you can save enough money to cover unexpected loss, renters insurance may be worthwhile.

Why is insurance important? ›

Insurance is your financial plan's safety net – having the right insurance at the right amount protects you and your family from unforeseen events and provides a baseline financial cushion.

What are the three ways that renters insurance protects a renter? ›

Renters insurance policies are helpful in three ways: repairing or replacing your belongings if damaged, paying for living expenses if you're displaced, and covering damages to others.

What are the three major parts of a renter's insurance policy? ›

Renters insurance has three basic coverage components: personal possessions, liability, and additional living expenses.

What are the 2 main differences of home and renters insurance? ›

The main and most obvious distinction between renters insurance and homeowners insurance is that a homeowners policy safeguards the home's physical structure against covered perils while renters insurance won't protect the home or building occupied by the tenant.

What is the main reason someone would want to have and need to have renters insurance brainly? ›

Final answer:

Renters insurance is important because it covers personal property, liability, and additional living expenses not covered by the building owner's insurance.

Why do people choose not to have renters insurance? ›

Some Renters Feel Their Property is Insured by the Landlord

Your landlord may have property insurance to protect the building structure and common areas, but this insurance offers no protection for your furniture and other belongings inside your rented property.

What are two examples when renters insurance would not cover the event? ›

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.

What does renters insurance actually cover? ›

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.

Who needs renters insurance Quizlet? ›

for tenant occupants of a property, i.e. individuals who do not own or have an interest in the property.

Do renters need umbrella insurance? ›

Renters may think that because they don't own their homes they don't need umbrella liability insurance, which provides coverage on top of other policies. In most cases, they would be wrong. Umbrella coverage, regardless of whether you're a homeowner, can shield you from potential financial ruin.

Why is it bad to not have renters insurance? ›

Your Landlord Won't Cover Damages

For example, if there is a fire in your apartment, and you lose everything, your landlord will not pay to replace your belongings, even if the fire is not your fault. The same goes for many other kinds of emergencies that could befall a renter.

Do I need renters insurance if I live with my boyfriend? ›

Does each roommate need renters insurance? Many insurance companies will require roommates to have their own separate renters insurance policy rather than allowing roommates to be on a policy together. If your landlord doesn't mandate renters insurance, you and your roommates aren't required to carry a policy.

What is one thing that is covered by renters insurance and one thing that is not? ›

Accidental or intentional damage, whether it's caused by humans or pets, is not considered a covered loss or event. As a result, your insurance carrier won't pay to repair or replace the damaged item. For example, if a fire damages your laptop, your renters insurance policy will pay to replace it.

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