When you’re renting a house or apartment, it’s important to protect your personal assets. Protect yourself with renters insurance and get that extra security for your personal liability. Learn what to look for in a renter’s insurance policy.

Why do I need renter’s insurance?

Most rental properties have insurance that covers damage to the actual dwelling, which means your personal property (furniture, electronics, clothes, etc.) not included. To protect your possessions in case of fire, theft, or damage, you need your own renter’s policy.

What does a renters insurance policy cover?

A renter’s policy consists of two major components: Personal Property and Liability Protection.

Personal Property Protection protects your personal property against such threats as fire, theft and vandalism. It also protects your personal property while you are away from home. For example, if you’re on vacation in Europe and your camera and clothes are stolen, those items are covered since they are considered personal property.

Liability Protection covers bodily injury and property damage caused by negligence. For example, if you accidently leave the bathtub running and it overflows into a neighbor’s unit, you could be found liable for that damage and required to pay for repairs related to the accident as well as any costs if they bring a lawsuit against you. Renter’s insurance would cover those costs to the policy limit.

Loss of Use covers living expenses in case you cannot inhabit your home for healthier and safety reasons after a loss.

Medical Payments to Others provides coverage for yourself to pay for necessary medical expenses for others if they are injured on the rented house or apartment you live in or injured as a result of your actions.

How much coverage do I need?

Many landlords require their tenants to have a minimum level in liability coverage. If your landlord doesn’t have this guideline, talk to an insurance agent to determine how much coverage you need.

For personal property damage coverage, one of the first questions the agent will ask you is how much is your personal property worth. A good start is $30,000 to $50,000 for apartments and around $100,000 for homes.

Take photos or videos of your place and your most important belongings. In case of a disaster, you’ll have a record of everything that was lost or damaged.