Renter insurance, like homeowner insurance, is sold as a package. Rental insurance provides coverage for your personal belongings and personal liability (legal responsibility) in the same way that a homeowner policy does. However, rental policies do not provide coverage for the value of the building you rent, so the premium for tenant coverage is low.
Reasons for Renter Insurance: Typically, the homeowner's policy that covers the building you live in does NOT offer any protection for your property, your cost to find other housing, or your personal liability. If you rent an apartment or a home, you will not always be required to have renter insurance by the lease, but without it you are often left out in the cold if the building is damaged or you are a victim of theft. Renter insurance will also cover you if someone is injured in your home or elsewhere due to your negligence.
Rental Insurance for College Living:
- If you live on-campus: Check and see if your belongings are covered under your parent's homeowners policy. If a student is a dependent under their parent's insurance coverage, their personal belongings may be covered in the event of a covered loss.
- If you live off-campus: Consider purchasing renters insurance. Rental insurance will provide coverage if your property is destroyed or stolen, or if someone is injured on your rental property due to your negligence. If you are dependent on your parents' insurance, check with their agent or insurance company to see if the coverage extends to a dependent living away at school.
Multiple Roommates: Renters insurance usually covers you or any relative you live with. If you live with non-relative roommates, each of you would need your own rental insurance policy to cover personal belongings and personal liabilities. Check your insurance policy contract or talk to your agent or insurance company for more details.