What is Renters Insurance? – Nationwide (2024)

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What is Renters Insurance? – Nationwide (1)

Many renters are under the impression that their landlord’s insurance policy will cover their belongings, unfortunately that generally is not the case. Your landlord’s policy covers the building itself, but it may not include your personal belongings, and may not cover injuries sustained within the structure. That’s where renters insurance comes in.

Renters insurance protects your personal property in a rented apartment, condo or home from unexpected circ*mstances such as theft, a fire or sewer backup damage – and will pay you for lost or damaged possessions. It can also help protect you from liability if someone is injured on your property.

Renters insurance is similar in scope to homeowners insurance, with the exception that it does not provide coverage for the dwelling itself or other structures.

How does renters insurance work?

If you experience a covered loss in your rented space, renters insurance can help to cover the associated costs. The amount covered will depend on the type of loss that occurred and the amount of coverage you have.

There are two types of coverage options under a typical renters policy: Actual Cash Value coverage and Replacement Cost coverage. Here’s the difference between the two:

  • Actual Cash Value coverage will reimburse you for the value of the items at the time of the damage or loss.
  • Replacement Cost coverage covers the cost it takes to replace the items lost or damaged.

What does renters insurance cover?

A renters insurance policy offers you coverage for the loss or destruction of your personal belongings in the event of a covered peril such as:

  • Fire
  • Lightning
  • Windstorm
  • Hail
  • A frozen plumbing system
  • Theft
  • Vandalism
  • Impact by a vehicle

Renters insurance may also cover you if:

  • You are forced to temporarily move out of your home: In the event your home becomes unlivable due to damage caused by a covered instance such as a fire or vandalism, renters insurance can help cover the cost of alternative living arrangements while your home is repaired or rebuilt.
  • A person is injured on your property and requires medical attention: Personal liability coverage is designed to protect you, as well as other individuals who visit your home, if an accident were to occur. This type of coverage will help pay for medical costs and legal fees that you could end up incurring.
  • Items you keep inside your car are damaged or lost: Depending on your renters insurance policy, you may be covered for belongings that you keep inside your car. Note that this coverage does not include equipment or systems installed in the car.

Get more information about what renters insurance covers.

What does renters insurance not cover?

Now that you have a basic idea of what renters insurance covers, it’s important to understand what a basic renters insurance policy does not cover so that you’re prepared:

  • Valuables. Expensive collectibles and valuables such as jewelry may not be covered under a basic renters policy and may require additional coverage.
  • Home business. Operating a small business out of your home doesn’t mean it will be covered by your renters insurance. For instance, if your business laptop is stolen from your apartment, there’s a chance it could be considered business property and therefore, won’t be completely covered by your renters insurance. Check with your provider to see if your policy covers a home business or if you need additional coverage.
  • Motorized vehicles. Use or ownership of a motor vehicle will not be covered by your renters insurance even if it is parked on your property (this also applies to aircraft and specific watercraft). Personal belongings kept inside the vehicle, however, are typically covered.

Find out more about the benefits of renters insurance and get a quote online today. Also, remember to always make sure to thoroughly read through your policy so that you have an understanding of what is and isn’t covered.

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Insurance terms, definitions and explanations are intended for informational purposes only and do not in any way replace or modify the definitions and information contained in individual insurance contracts, policies or declaration pages, which are controlling. Such terms and availability may vary by state and exclusions may apply.

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What is Renters Insurance? – Nationwide (2024)


What is Renters Insurance? – Nationwide? ›

Renters insurance protects your personal property in a rented apartment, condo or home from unexpected circ*mstances such as theft, a fire or sewer backup damage – and will pay you for lost or damaged possessions. It can also help protect you from liability if someone is injured on your property.

What is renters insurance in simple terms? ›

Renters insurance is a form of property insurance that protects tenants who live in a rented dwelling. Policies cover personal property, liability claims, and additional living expenses when a unit is damaged.

What is renters insurance Quizlet? ›

Renter's Insurance. insurance that protects tenants of a property owned by someone else against theft, property damage, loss of personal property, and loss of use.

What things does renters insurance not cover? ›

What Does Renters Insurance Not Cover
  • Personal Property. ...
  • Liability and Medical. ...
  • Emergency Living Expenses. ...
  • Damage Caused by Floods, Earthquakes and Sinkholes. ...
  • Damage Caused by Pests. ...
  • Damage Caused by Mold. ...
  • Damage Caused by You. ...
  • Damage to the Building Itself.

How much is most renters insurance? ›

The average cost of renters insurance is about $15 to $20 per month1. However, what you end up paying depends on a number of factors. Take a look at the information below to find out how your home or apartment renters insurance cost is determined.

What is renters insurance Why is it important? ›

Renters insurance protects your personal property in a rented apartment, condo or home from unexpected circ*mstances such as theft, a fire or sewer backup damage – and will pay you for lost or damaged possessions. It can also help protect you from liability if someone is injured on your property.

How important is renters insurance? ›

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.

What does renters insurance typically cover? ›

Typically, renters insurance provides four types of coverage: personal property coverage, renters liability insurance, guest medical expenses, and additional living expenses. Personal property or personal belongings coverage is what most people think of when it comes to renters insurance.

What is renters insurance also known as? ›

What is Renter's Insurance? Renters insurance, also known as tenants insurance, is a type of policy offered by most major New York insurers. These policies provide contents coverage and liability protection in the event someone becomes injured at your residence.

What type of policy is renters insurance? ›

Renters insurance is a form of property insurance that covers losses to personal property and protects the insured from liability claims. 1 This includes injuries occurring in your rental that aren't due to a structural problem. Injuries due to structural problems are your landlord's responsibility.

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

Renters insurance, sometimes referred to as tenants insurance, includes three basic types of protection: Personal Possessions. Liability. Additional Living Expenses.

Does renters insurance cover a broken window? ›

Renters insurance will not cover a broken window in your own residence, but the personal liability coverage in your policy will cover damage to someone else's window if it's determined you're the liable party.

Does renters insurance cover moving costs? ›

Unless you're moving to relocate while your rental home is repaired due to a peril covered by your renters insurance policy, the cost of your move is not covered either. Licensed moving companies usually offer coverage for damage while they have your stuff. Third-party moving insurance is also available.

What is the most common renters insurance? ›

The typical renters insurance policy offers $100,000 in liability coverage. For renters, this amount is often sufficient. However, if you entertain company frequently at your home or if your assets exceed your limit, you should consider a coverage amount equal to at least the total value of your assets.

Why is my renters insurance so high? ›

Insurance is all about risk, so customers that live in areas with higher risks of claims usually have to pay more for coverage. Some location-based factors that impact renters insurance rates can include: The rate of crimes, especially theft, in your ZIP code.

Why did my renters insurance go up? ›

Renters insurance premiums can rise if you have a bad credit score, while good credit can lower them. Paying off debts can help you establish credit. Location: The cost of renters' insurance varies depending on the crime rate in your locality and proximity to a fire station from where you live.

What are the three major parts of a renters insurance policy? ›

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

What is rental coverage insurance? ›

Rental car insurance is separate coverage offered by a rental car company, whereas rental car reimbursem*nt coverage is an optional coverage you can add to your personal auto insurance policy to help pay for rental car costs while your vehicle is being repaired after an accident.

What is renters insurance and homeowners? ›

Homeowners insurance covers the actual building you live in (and associated structures such as garages). With renter's insurance, the landlord will be expected to have coverage on the building, while your insurance will cover your personal property.

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