What Does my Renters Insurance Cover?

You've probably heard it from your mom, your older brother, you insurance agent and maybe even your apartment complex's landlord: you should have renters insurance.  Let me repeat that, you should have renters insurance! Just because you're not ready to buy a house doesn't mean you don't need financial protection for you, your friends and your belongings.

If you think it's not worth the very small cost (think your extra change every month), think again.  Renters insurance can cover:

Personal property. That favorite shirt? Your laptop you're still paying off? The new couch you painstakingly through about for weeks before purchasing? If the things you've accumulated over years are damaged or stolen, you're going to need financial assistance to replace them.  The average renter owns about $20,000 in personal property -- and without insurance, you'll be footing the entire bill instead of just the small deductible on your insurance policy.  An additional bonus: renters insurance covers your stolen belongings no matter where you go, even if you're backpacking through Europe and someone decides to take your valuables. Personal liability. If someone gets insured in your apartment, renters insurance provides coverage for legal costs.  This includes a friend tripping down the stairs or even Fido biting someone.  Some policies even cover the medical bills of your guest. Property damage to others' property. If you're clumsy and accidentally break or damage someone else's property in their home, your policy can help pay to replace it. Disaster damage from smoke, weight of ice and snow and more. A place to call home when your real home isn't livable. If you can't stay in your apartment because of damage or another incident, renters insurance can cover hotel costs, relocation expenses and additional living expenses up to a certain limit.

Some other coverage options include replacement cost coverage (instead of actual cash value coverage), sewer or drain backup coverage, earthquake coverage and insurance riders (specific coverage for rare coin collections, jewelry or other valuables).  It's best to talk to your Schwarz Insurance agent when deciding what coverage is best for you, and often you can bundle your renters insurance with other insurance policies you already have.

And when you finally step up to the apartment plate and obtain renters insurance, easily track and record your belongings and their worth through apps like Know Your Stuff - Home Inventory.  Having everything recorded with value will make the difference between being able to replace your entire wardrobe to only being able to pick out a few new pieces.