Stay Protected with Renters Insurance

If you rent a house or apartment and think your landlord’s insurance will cover you in the event of a disaster – think again. Landlords typically only cover the building they are renting to you, and not your property. To protect yourself and your property, consider purchasing renters insurance.

Although 95 percent of homeowners have homeowners insurance, only 41 percent of renters have renters insurance, according to the Insurance Information Institute. The majority of renters are putting themselves and their possessions at risk in the event of a disaster, such as a fire or theft.

If you’re unsure about whether or not you need renters insurance, add up the cost of the items you own, including electronics, furniture, and clothing. You may be surprised by the value of your belongings and what it would cost to replace them.

On average, the Insurance Information Institute reports that renters insurance costs $188 per year, or just under $16 per month. That’s a relatively inexpensive investment that includes coverage for:

• Personal property: losses from fire, smoke lightning, vandalism, theft, explosions, windstorms, and certain types of water damage, such as a burst pipe.
• Additional living expenses: if your home is uninhabitable due to a covered loss such as a fire, a portion of your living expenses may be covered.
• Personal liability: protection against lawsuits for bodily injury, property damage, and personal injury damages such as libel or slander. Specific coverages vary by state.

Who should purchase renters insurance?

All renters should consider purchasing renters insurance. Full-time college students living away from home may also be at risk for loss. Students living in a dorm may have coverage for many items under their parents’ insurance, but expensive items such as computers, other electronics, musical instruments and expensive sporting goods may be subject to coverage limits under a standard homeowners or renters insurance policy.

For students living off-campus, a separate renters insurance policy protects belongings and provides personal liability coverage.

To find out more about renters or other personal lines of insurance, contact your AAA Insurance agent at 1-800-222-1469, visit AAA.com/Insurance, or stop by your local AAA office.