Renter's Insurance

Protecting What Matters: Your Guide to Renter's Insurance

Many tenants mistakenly believe that the property owner’s insurance covers their belongings. This is false. The property owner’s policy only covers the structure itself. Renter's Insurance is an essential, highly affordable policy designed to protect you and your assets while living in a rental home.

Why Renter's Insurance is Required and Beneficial to You:

1. Protects Your Personal Property (Contents): In the event of a covered loss like fire, theft, or water damage, this portion of the policy pays to replace your furniture, electronics, clothing, and other valuables. Without it, replacing these items would come directly out of your pocket.
2. Liability Coverage: This is the most crucial protection. If a guest is injured in your unit, or if you accidentally cause property damage (like a kitchen fire or an overflowing bathtub that damages the unit below yours), the liability portion covers legal expenses and settlement costs, preventing potentially devastating personal lawsuits against you.
3. Additional Living Expenses (ALE): If a covered peril (like a fire) makes your unit uninhabitable, ALE coverage pays for temporary housing, hotel bills, and meal expenses while the unit is being repaired, ensuring you are not left without a place to stay.

How to Best Acquire Renter's Insurance:

• 1. Shop Around for Quotes: The easiest way to purchase a policy is to contact the same company that insures your car, as they often offer discounts for bundling. Get quotes from at least three major insurance providers (State Farm, Geico, Allstate, etc.) to compare rates.
• 2. Determine Coverage Limits: Assess the total value of your personal property to choose an appropriate "Contents Coverage" limit (e.g., $15,000 or $30,000). Ensure your "Liability Coverage" meets or exceeds the minimum required by your lease agreement (minimum $100,000).
• 3. Review Your Deductible: Choose a deductible amount (the portion you pay before coverage kicks in). A higher deductible means a lower monthly premium, but be sure you can afford to pay that amount if you need to file a claim.
• 4. Provide Proof of Coverage: Once purchased, simply upload a copy of your policy’s Declaration Page through your AppFolio portal showing the property address and the required coverage amounts.

Renter's Insurance typically costs less than a tank of gas per month, making it one of the most cost-effective ways to secure your financial future while renting.

FAQs For Renter's Insurance