Renters insurance, often called tenants insurance, is an insurance policy that provides some of the benefits of homeowners insurance, but does not include coverage for the dwelling, or structure, with the exception of small alterations that a tenant makes to the structure. It provides liability insurance and the tenant’s personal property is covered against named perils such as fire, theft, and vandalism. It also pays expenses when the dwelling becomes uninhabitable. Due to renters’ insurance existing mainly to protect against losses to the tenant’s personal property and provide them with liability coverage but not to insure the actual dwelling, it’s significantly less expensive than a homeowners policy. The owner of the building is responsible for insuring the dwelling itself but bears no responsibility for the tenant’s belongings.

Many large and medium-sized rental properties include a requirement in their lease that tenants hold renters’ insurance. If the tenant damages the premises, the landlord and other tenants can recover against the perpetrator’s insurance. It is important to know what type of damage your insurance covers. Essentially, there are three types of coverage available: loss of use, personal property, and personal liability.

1. My landlord’s policy will protect me.

This is a widely adopted assumption that is mostly untrue. A landlord’s insurance policy will cover his or her property and possessions, which is made clear in lease agreements. If damages are the fault of the landlord, like a fire started by faulty electrical wires, then you might be eligible for compensation. However, that’s after a lengthy court process.

2. It’s too expensive.

This is probably the biggest misconception. Renters mistakenly believe that they will need to shell out thousands upon thousands of dollars to protect their belongings, but the National Association of Insurance Commissioners puts the average price of renters insurance at around $15-$30 a month. The cost depends on location and other personalized factors, but it’s still a small price to pay for a solid protection.

3. I don’t have any valuables to protect.

You might think to yourself, well I don’t really have that much stuff of value. Think again. Do you have a computer? A phone? Jewelry? Sports equipment? Dishes? Now it’s all starting to add up. While policies vary, most insurance plans cover from $10,000 to upwards of $100,000 worth of property. In many cases, coverage may even protect you from legal and medical fees if someone gets hurt in your apartment.

Renters insurance is the best way to protect your property and ensure that you have proper coverage.http://app.tagent.com

Landlords’ insurance policies typically do not cover any personal property belonging to tenants, or otherwise protect the interest of tenants; although a liability policy protecting a landlord or property manager will be of benefit to tenants should they incur a loss for which the landlord is responsible.