What is Renters Insurance? – Nationwide (2024)

FAQs

What is Renters Insurance? – Nationwide? ›

Renters insurance protects your personal property in a rented apartment, condo or home from unexpected circ*mstances such as theft, a fire or sewer backup damage – and will pay you for lost or damaged possessions. It can also help protect you from liability if someone is injured on your property.

Renters insurance covers personal property, personal liability, medical payments and additional living expenses or loss of use, up to the limits of your policy.

Renter's Insurance. insurance that protects tenants of a property owned by someone else against theft, property damage, loss of personal property, and loss of use.

The average cost of renters insurance is about $15 to $20 per month¹. However, what you end up paying depends on a number of factors. Take a look at the information below to find out how your home or apartment renters insurance cost is determined.

Renters insurance coverage is almost always worth it. It is much more affordable than other policies, including home or auto insurance, and provides valuable financial protection. Even if you can save enough money to cover unexpected loss, renters insurance may be worthwhile.

Your personal property, personal liability, additional living expenses, and guest medical expenses are usually covered under your renters insurance. It typically does not cover earthquakes, floods, bedbugs, mold, or damage to the exterior of the building.

Damage Caused by Floods, Earthquakes and Sinkholes

Flooding, earthquakes and sinkholes are all examples of natural disasters that are not covered by a typical renters insurance policy.

Renters insurance is similar to home insurance, except it generally provides coverage for your belongings within a rented space. It also likely includes personal liability protection, which can keep you covered in case there's an accident in your home or you cause damage to another person's property.

Rental car insurance is separate coverage offered by a rental car company, whereas rental car reimbursem*nt coverage is an optional coverage you can add to your personal auto insurance policy to help pay for rental car costs while your vehicle is being repaired after an accident.

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.

Why is my renters insurance so high? ›

Insurance is all about risk, so customers that live in areas with higher risks of claims usually have to pay more for coverage. Some location-based factors that impact renters insurance rates can include: The rate of crimes, especially theft, in your ZIP code.

Your rate for renters insurance will increase after a claim, especially if it was due to theft or fire.

You'll choose your deductible when you buy a renters insurance policy. A higher deductible means your claims will cost you less money out of pocket. Typically, renters insurance deductibles are $500 or $1,000, but companies often provide a range of options.

Some Renters Feel Their Property is Insured by the Landlord

Your landlord may have property insurance to protect the building structure and common areas, but this insurance offers no protection for your furniture and other belongings inside your rented property.

Additional Expense

One of the main cons of getting renters insurance is that it can be an added expense for tenants who are already paying rent and other living expenses. This can be a deterrent for some tenants who may feel that they cannot afford the additional cost of a renters insurance policy.

Depending on your specific circ*mstances, canceling your renters insurance could expose you to some financial risks. You may receive a refund if you cancel your policy early, but there could also be fees associated with canceling depending on your provider's specific rules.

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

Unless you're moving to relocate while your rental home is repaired due to a peril covered by your renters insurance policy, the cost of your move is not covered either. Licensed moving companies usually offer coverage for damage while they have your stuff. Third-party moving insurance is also available.

Renters insurance can cover the food in your fridge

But before you start to make a new shopping list (and ideally after you've cleaned up the evidence), check in with your insurance agent: Food spoiled because of a power outage or failed appliance should be covered as personal property.

Renters insurance will not cover a broken window in your own residence, but the personal liability coverage in your policy will cover damage to someone else's window if it's determined you're the liable party.