Why Renters Insurance is Worth It

A smiling women on a couch in the midst of moving.

There are many different types of insurance policies and coverages on the market today. Because we can’t predict the future, it is challenging to know what’s necessary and what’s not. Renters insurance is often overlooked – while it’s usually not a required policy, that doesn’t mean it’s unnecessary. These affordable policies can be an integral part of your financial plan.

What is Renters Insurance?

As the name implies, renters insurance is a type of insurance policy that caters specifically to people who rent their home – whether “home” is an apartment, single family home, condominium, or duplex. These insurance policies cover you and your possessions if your rental becomes damaged or uninhabitable.

What Does Renters Insurance Cover?

Renters insurance protects against covered events or perils. Most policies define covered perils to include things like fire, theft, and vandalism. That said, each policy’s definition of a covered event can vary so it’s important to get clarity from your insurer.

Renters insurance can protect you in the following ways:

  • Personal possessions. Your television, furniture, clothes, coffee pot, towels – think of all the items inside your home. Renters insurance can reduce your out-of-pocket costs to replace these items if they were to be destroyed or stolen. It also covers damages if the loss happens while you’re traveling with your belongings or away from home.
     
  • Personal liability. Much like a homeowners insurance policy, a renters policy also offers protection if someone gets injured or experiences property damage while visiting you. A friend comes over and is bitten by your dog, trips over your favorite indoor plant, or slices their finger while helping you prep dinner. If they choose to sue you or need medical treatment, you could be responsible for costs related to medical bills or legal fees. Renters insurance can help pay for those expenses.
     
  • Uninhabitable dwelling. If your rental is damaged and unlivable while repairs are being made, renters insurance can help pay for associated expenses like a hotel room, meals, a storage unit, and more. This is typically referred to as “loss of use coverage” because you cannot use the rental property covered on your policy until it is habitable again.

What Does Renters Insurance Not Cover?

Renters insurance does not cover any destruction to the building or structure you live in; your landlord’s policy is responsible for that. It also will not cover a roommate’s belongings unless their name is listed in your policy documents. Simply put, it only covers your belongings and liabilities related to your tenancy.

Why Should I Get Renters Insurance?

Life happens, and renters insurance can help you be financially prepared for when it does. While some landlords require renters insurance for their tenants, there are still several reasons to add this type of policy into your financial picture, even if it’s not mandatory.

  1. You might be less protected than you think. Your landlord’s policy does not cover your possessions. Instead, their policy covers the building, appliances, and other items within the home that they own.
     
  2. You have a lot of stuff. If you are like most people, you’ve accumulated your belongings over an extended period. You splurged on your laptop, your ski gear has slowly been upgraded over the years, and your favorite designer shoes were a birthday gift. If replacing all of your items at the same time is not something you can easily afford, renters insurance makes sense for you.
     
  3. You like to have guests over. It’s all fun and games until someone gets hurt. If it happens at your house, you could be held liable for any accidents that cause damage to property or people – regardless of the fact it’s a rental. Renters insurance offers financial protection against unforeseen expenses resulting from an accident.
     
  4. You have a low risk tolerance. The annual renters insurance policy premium will cost less than the expenses related to the loss of your belongings or a claim you’re liable for. Several factors contribute to how much your renters insurance will cost, but according to Forbes, it can range from roughly $150 to $300 per year in Oregon or Washington. To see how much it would cost you, get free renters insurance quotes from TwinStar Insurance Services today!*

How Much Renters Insurance Coverage Do I Need?

The amount of coverage you need will vary based on the value of your belongings. Estimate the amount of money you would need to replace everything you own by taking a quick inventory, especially of any big-ticket items. Use that number when reviewing policy limits.

If you’re not sure where to start, look to a trusted insurance agent. Our team of local experts at TwinStar Insurance Services* can also help you determine what coverages make sense for your specific needs.

How to Choose Renters Insurance?

When it comes to insurance, it’s a good idea to shop around. Your local credit union might be able to help you with this, or you can request free quotes from multiple insurers to compare side-by-side. You’ll want to consider the deductible, coverage limits, and overall premiums when making your decision.

Final Thoughts

Renters insurance policies offer protection and peace of mind for when the unexpected becomes reality.

Let TwinStar Insurance Services help you find the right renters insurance policy for you. We work with several trusted, reputable insurance companies which allows us to price shop to find you appropriate coverage at the best rate. Give us a call at 844.849.3614 to safeguard your future today!

*Insurance products and services are offered through and underwritten by SELCO Group Inc., dba TwinStar Insurance, which provides insurance services for TwinStar Credit Union as an independent contractor. SELCO Group Inc. is a licensed insurance company domiciled in the State of Oregon. Business conducted with TwinStar Insurance is separate and distinct from any business conducted with TwinStar Credit Union. Products offered through TwinStar Insurance are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the TwinStar Credit Union, and may be subject to risk. Any insurance required as a condition of an extension of credit by TwinStar Credit Union may be purchased from an agent or insurance company of the member’s choice.