What Protections Do Renters Policies Provide?
Renters policies’ protections can vary, as every policy has its own terms and conditions. In general, though, renters policies offer three primary coverages:
- Personal Liability Coverage, which usually covers certain incidents in which a tenant is held responsible for personal injury or property damage
- Personal Property Coverage, which normally helps protect the belongings that a tenant owns (e.g. furniture, electronics and clothes)
- Additional Living Expenses Coverage, which frequently helps pay for alternative accommodations if a tenant’s residence is rendered uninhabitable in a covered incident
When determining how much personal property coverage to select, tenants should carefully consider the value of all their belongings. People are sometimes surprised at how much their possessions are worth all together. A policy’s personal property coverage limit generally should be equal to or greater than the cumulative value of a tenant’s belongings.
For tenants who have particularly expensive items, such as computers, jewelry, or firearms, it’s also important to check whether a policy has any specific limits for those items. Some renters policies have set limits for these and other high-value items. Tenants who have items that exceed a policy’s particular limit for those items should work with their agent to find additional coverage through a higher limit, rider, or different policy.
Additional Benefits for Tenants
Pensio Tenant Benefit Association, operated by World Insurance Associates LLC, provides enrolled members who are residential rental tenants with:
- Guaranteed rent for up to one year if the member involuntarily loses their job
- Guaranteed rent for up to one year if the member becomes disabled
- Access to Pensio residential rental market reports
- Advice from a residential rental property tenant and landlord specialist
- Cyberisk Assessment from CyberSafe at Home
- Legal review of a member's new lease or eviction notice
- Emergency rent loan or personal loan up to $5,000
Becoming a member is easy. Learn more or sign up at pensiotenants.com, or call toll-free 888-891-0015.
Does Renters Coverage Include Protections for the Building a Tenant Lives In?
A renters policy’s liability coverage might offer protection if a tenant is found responsible for (or simply accused of) causing damage to the building they live in. Most renters policies, however, don’t offer any other protections for buildings. It’s usually a landlord’s responsibility to insure any rented homes or apartment buildings they own against lightning, wind, fire, and similar perils.
Who is Renters Coverage For?
Most people who lease a residence could benefit from the personal liability, personal property, and additional living expenses coverages that renters policies typically afford. Therefore, anyone who rents a place for an extended period of time should consider getting renters coverage. This may include:
- Tenants who lease their residence year-round
- People who own a home but lease a secondary residence for part of the year
- Employees who will be working in another state for an extended period of time
- College students who rent a residence off campus
How Can Tenants Get Quotes for Renters Insurance Policies?
While renters insurance is generally affordable, it’s still wise to compare the coverages and rates offered by different insurers. Tenants can easily do this by contacting an independent insurance agent, who can request quotes for renters policies on their behalf. With an independent agent’s help, tenants can have several renters quotes to look at in a short amount of time. If tenants need assistance comparing the different quotes, an agent can help with that, too.