renter's insuranceMany people who live in apartments assume they are covered by their landlord’s insurance policy, but they are wrong. Typically, landlords have insurance policies that only protect the structure of the dwellings they rent. It is up to the tenants to purchase renter’s insurance to protect their own belongings if they choose. Renter’s insurance is relatively cheap, though the price will vary depending on the amount of coverage you want and deductible you choose.

Here are some things to know about renter’s insurance if you live in an apartment or other rental:

  • Property. Your policy will cover your possessions in case of certain events, but not all circumstances. Make sure you know what your policy covers and purchase supplemental insurance if needed.
  • Liability. Another important feature of renter’s insurance is that it includes liability coverage, which protects you in case someone is harmed in your dwelling.
  • Living expenses. If your apartment was destroyed and your possessions were gone, could you afford extra living expenses like hotel rooms? Some policies include coverage for these expenses.
  • Damage. Most policies cover damage from fire, lightning, smoke, wind, hail, explosions, riots or other civil commotions, damage caused by a vehicle or an aircraft, vandalism and theft, falling objects, damage caused by the weight of snow or ice accumulation, water damage from within the home (like plumbing or an appliance malfunction), and damage from an electrical current.
  • Additional coverage. While most policies even cover damage from a volcanic eruption, they do not cover damage caused by floods or earthquakes. This type of coverage must be purchased separately.

Protect yourself and your family from losing everything with renter’s insurance.