Renters insurance is property insurance that provides coverage for the policyholder's belongings, liabilities and possibly living expenses in the event of a loss. It is available to people who rent or sublet a single-family home, flat, duplex, condo, studio, loft or townhouse. If you are at risk for these perils and cannot obtain earthquake or flood coverage through your renters insurance policy, you will need to purchase a separate flood or earthquake insurance policy for your personal property. If you're like me, in your early twenties, and own almost nothing of significant value except an old iPhone and a MacBook on its last legs, you probably think renters insurance is pointless.
Renters insurance policies include limited coverage for medical payments in case guests are injured in your residence. Renters insurance policies may also offer additional coverage for more unique risks, such as a sinkhole endorsement that would protect your belongings against such a peril. In the case of renters insurance, the policyholder can file a claim for damage or theft of your personal property, liability coverage or additional living expenses. When damage to or theft of your personal property is covered by your renters insurance, you can file a claim for reimbursement up to the limits of your policy.
Just as your renters policy covers your belongings when you are travelling, it will usually cover them when they are stored somewhere other than your own home. You may be surprised to learn that some renters insurance policies cover your valuables when they're not in your home, or if they're stored outside your home. Allstate, however, specifically offers flood insurance, although it is not as inexpensive as basic renters insurance. Also known as renters insurance or an HO-4 policy, renters insurance is similar to homeowners insurance in that it covers many of the same scenarios, such as fire and theft, but is much cheaper because it only includes what's inside your home and not the structure itself.
In addition to the four main coverages, renters insurance policies often offer other supplemental coverages. Renters insurance covers many things and everyone should have it, but flood damage is difficult to cover. Most renters' insurance policies do not cover the costs of damage associated with bedbugs, with limited exceptions. If your worldly possessions are reduced to a futon, a coffee pot and a toothbrush, you probably don't need renters insurance.
Allstate estimates that, for a standard two-bedroom flat, the value of the average renter's personal property in the U.S. No, but some landlords require proof of renter's insurance before signing a lease, or within a certain time frame.