What insurance do you need when renting? (2024)

FAQs

What insurance do you need when renting? ›

Renter's insurance, also known as tenant's insurance, is purchased by tenants to protect their personal belongings and provide liability coverage while renting a property.

The core coverages of landlord insurance include property damage, liability protection, and rental income lost due to a tenant's inability to rent. Additional riders—or add-ons to policies—can be purchased to cover income lost when a tenant misses a rent payment and flood damage.

While there isn't a specific recommended coverage amount based on income, it's important to choose coverage that protects all your valuables and fits within your budget. You should assess the value of your personal belongings and your financial ability to replace them if you need to.

Is Renters Insurance A Requirement In California? It is not required by California law, however, many landlords can enforce a policy that requires renters insurance as a term of the lease.

Renters insurance has three basic coverage components: personal possessions, liability, and additional living expenses.

Homeowners insurance is designed specifically for occupied primary residences. Properties that are left vacant for most or part of the year require their own special insurance (such as vacant home coverage). If you're renting out your property regularly, you'll need landlord coverage.

Renter's insurance provides coverage for your personal belongings, whether in your home, car or with you while you're on vacation. In addition, renter's insurance provides liability coverage in case someone is injured in your home or if you accidentally cause injury to someone.

Your landlord shouldn't be listed on your renters insurance policy as an additional insured. Having an additional insured on your renters insurance means that you would be paying to cover them and their personal property too.

Without a renters policy in place, damage or injury from a gathering gone wrong could be your responsibility. Renters insurance can help protect a landlord against tenant negligence. Tenant negligence can take many forms, ranging from a kitchen fire while cooking to water damage from an overflowing tub.

If you don't have renters insurance, you risk losing your personal property, and your landlord's insurance will not cover your belongings inside the rental. Your personal belongings can only be covered if you purchase a renters insurance policy, which is one of the reasons why it is important to get it.

What does renters insurance not include? ›

Keep in mind that your policy will exclude certain perils: Property damage to your buildings, roof, and siding (these are covered by your landlord) Water damage caused by flooding or underground water. Damage caused by earth movements, such as earthquakes and landslides, or caused by nuclear hazard.

Flooding, earthquakes and sinkholes are all examples of natural disasters that are not covered by a typical renters insurance policy. All three of these events can easily damage your personal property, so you should buy additional coverage if you think you're at risk.

Renters insurance deductibles often range between $250 and $2,500 on personal property claims. Liability coverage on your renters policy typically won't have a deductible. Explore Progressive's editorial standards for Answers articles to find out why you can trust the insurance information you find here.

Earthquake, flood, mold, earth movement, and “wear and tear” are some of the perils that are usually excluded. When an insurer writes your homeowners coverage, the insurer is legally obligated to offer you earthquake coverage for an additional premium.

For regular homeowners, HO-1 and HO-2 are named-peril policies, while the HO-3 is the all-perils policy. The HO-4 covers apartment renters, but condo owners are best served by an HO-6. Mobile homes are covered under the HO-7, but only when they're stationary; motor homes aren't covered.

Landlord insurance (also known as rental property insurance) does not have a fixed price. It depends on many things, including the size, value, and location of your property and how much coverage you need. On average, Florida landlord insurance costs around $2,400 per year, which is above the national average.