Renters insurance is a worthwhile investment to protect you and your belongings when you live in rented space. While landlords are responsible for the maintenance of their properties, some may require their tenants to have renters insurance policies to supplement their own insurance.

Even if your landlord doesn’t require a

renters insurance

policy, you may still be considering getting one. There are a few things you’ll need to take into account before choosing a carrier.

The car insurance broker and comparison app

Jerry

has gathered everything you need to know about renters insurance. Keep reading to learn why renters insurance is worth the money (and how to save on your policy!).

MORE: How much renters insurance do you really need?

What is renters insurance?

A renters insurance policy, also known as an HO-4 policy, is a type of insurance similar to homeowners coverage, but without the coverages for the dwelling or structure. It provides renters with coverage for personal property, personal liability, and loss of use.

These policies are specifically for anyone who does not own their own home. With renters insurance, renters are protected from large out-of-pocket expenses if a covered peril causes damage to their property.

Key Takeaway Renters insurance provides you with legal and financial security by covering both personal property and liability.

What does renters insurance cover?

There are four main types of coverage included within standard renters insurance policies:

Liability: Covers expenses if someone is injured or has their property damaged while at your home

Personal property: Covers your belongings on the rented property. You can choose between actual cash value (what your belongings are worth at the time of the loss) or replacement cost coverage (the amount it will cost to replace items regardless of worth)

Loss of use: Covers the cost of living expenses (food, hotel room, etc.) if a peril damages part or all of your home

Medical payments: Pays for medical expenses if someone else is injured while at your home

Losses in these categories caused by covered perils will be paid up to the limits listed in your policy. There are endorsements available to add to your policy if you need extra coverage, and these may vary by insurance provider.

What events are covered?

Renters insurance will pay out coverage only in certain situations, referred to as perils. The following perils are typically covered by a basic renters insurance policy:

Fire

Lightning

Explosions

Wind

Hail

Theft

Vandalism

Riots

Falling objects

You can find the events covered by your policy listed as covered or named perils. Your policy may include all of the perils listed above and more, but it could potentially cover fewer. Read your policy documents carefully so you know what you’re covered against.

Your policy will most likely also include exclusions or perils that will not be covered. Common exclusions include floods, earthquakes, and damage caused by pets.

MORE:

Does renters insurance cover flood damage?

Why get renters insurance?

Renters insurance is a great way to protect your personal property while you rent an apartment, house, or other dwelling. It is one of the cheapest kinds of insurance available for purchase, and these policies can potentially pay out thousands of dollars in the event of a loss.

Most landlords will require their tenants to have renters insurance as a condition of their leases. Even if your landlord does not require you to have a renters insurance policy, it’s highly recommended to buy one to cover both yourself and your belongings.

Is it worth the premiums?

The average yearly cost of renters insurance in the U.S. is $168, or roughly $14 per month. For these rates, you are paying for coverage worth thousands of dollars in payouts. The affordable prices of renters insurance premiums will cover you against large, potentially catastrophic out-of-pocket expenses if a covered peril or loss occurs.

Your landlord will have insurance coverage over the entire property, but it may not provide sufficient coverage for your belongings in the rental. If you have a renters insurance policy, it can provide coverage for your property that is not included within your landlord’s insurance.

How to get renters insurance

Now that you have an understanding of what renters insurance is and why it’s beneficial to have, you’re ready to learn how to find your own renters insurance policy. Here is an easy, three-step guide for finding the right renters insurance policy:

Determine your needs. You will need to complete an inventory of your personal belongings to calculate their value in addition to considering how your location, risk level, and landlord’s requirements factor in.

Research different providers. It’s a good idea to do some quick research on insurance companies to see which typically have low rates in your state and offer the coverages you’re looking for.

Shop around for quotes. It’s highly recommended to get quotes from multiple insurance companies to find the most savings. (This is easy with the

Jerry

app!) Providers may not calculate their rates the same way, so it’s worth it to check out all of your options. Remember, always get a renters quote from your

car insurance

provider.

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How to stack your savings on renters insurance

Renters insurance is one of the cheapest types of insurance on the market, and there are multiple ways to find the most savings on your premiums.

Choosing the right coverage limits can help you save on your renters insurance. Determining the value of your property will help you figure out how much coverage to purchase. This will help you buy the coverages you truly need.

Raising your deductibles can also help lower your insurance premiums. Higher deductibles mean lower premiums, and the reverse is also true. It’s nice to have a lower premium payment but remember that you will have to pay your deductible out of pocket before your insurance covers damages in the event of a loss.

One of the benefits of shopping around for insurance is looking at what discounts are offered by insurance companies. There are a variety of discounts available to customers, such as safety features, multi-policy or bundling, claims-free, early shopper, automatic payments and/or payment method, and more.

Key Takeaway You can save more on renters insurance by choosing the coverage limits that work for you, raising your deductible, or applying for discounts.

Saving on renters and car insurance

It’s important to protect your property against any damages from covered perils, and it’s even better if you can save money while doing it.

Jerry

can help you protect your home, car, and wallet in a few simple steps!

All you need to do is download the Jerry app and answer a few questions. In less than a minute, you’ll receive a list of competitive quotes from top-rated insurance companies. You’ll be able to choose between policies that fit your needs and have the best savings available on the market.

Want to find even more savings? Jerry can help you bundle your

renters

and car insurance to save on both policies! Once you find the policies you like, Jerry will handle the rest. You can get signed up for your new policy right away, and Jerry can even help you cancel your existing one.

“I was tired of looking around multiple websites, so I decided to give
Jerry
a try. Let me tell you—the process is so easy and simple, and they really find you the best prices for your coverage level. Getting insurance for my new car was quick and easy!” —Joanna D.

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FAQs

How much does renters insurance cost?

Renters insurance rates will vary from person to person based on numerous factors like marital status, credit history, location, and risk level. In the U.S., the average price range for a standard renters insurance policy is around $14 to $16 per month.

Is renters insurance legally required?

Requirements for renters insurance will vary by state. Some states do not legally require renters to have a renters insurance policy, but landlords can make it mandatory for tenants to have renters insurance as a condition of their leases.

You could save 15% or more on renters insurance by bundling

Bundle your renters and auto insurance with Jerry and save!

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