Frequently Asked Questions
Frequently Asked Questions About Renters Insurance
The average cost of Renters insurance in 2020 in the United States was $173 per year – or less than $15 per month- according to the Insurance Information Institute (I.I.I.).
It depends. Some higher value possessions, like jewelry and computers, are often subject to a category-based theft limit (for example, some policies have a $5,000 limit for computers, or a $3,000 limit for jewelry). When shopping for renters policies, ask about the various category limits and possible exclusions and how they apply to items you own. You may also purchase what’s called a Floater, which provides additional coverage for specific items not included in your basic policy.
Most renters policies include off-premises coverage, which means belongings that are outside of your home – whether in storage, in your vehicle or with you - are covered against the same perils listed in your policy. Some restrictions may apply, however, so be sure to ask your insurance agent for details.
If you are attending college, under age 26 and your parents have a Homeowners or Renters insurance policy, your parents’ insurance likely provides limited coverage for your possessions while you live on-campus in a dorm. However, if you are older than 26 or live off-campus in a house or apartment, you will need your own renters insurance policy to protect your possessions (and it likely will be required by your landlord).
Items that are “in your possession” are covered under a standard renters policy.
Your bike is protected by a standard Renters Insurance Policy, however, be sure to check your policy limits, as some policies may have limits below the value of your bike. Motor vehicles are not covered. A separate auto insurance policy is needed to protect your vehicle
If you live in a group house or share an apartment and want to purchase Renters Insurance, be aware that the regulations vary state to state, and policies vary significantly from company to company. Find out what regulations apply in your state, then shop around to find an insurance company that can accommodate your situation. Also, find out whether your policy needs to be updated if you get a new roommate or if all your roommates need to be named under the policy.
Some insurance companies allow unmarried couples who have been living together to obtain coverage. Some policies automatically extend coverage to any future resident of a policyholder’s household who fits the definition of a domestic partner.
Every claim situation – and every insurer – is unique. Typically, if you are not responsible for the loss or damage to your possessions, your insurance likely will not be affected. However, in some cases - particularly if you have multiple previous claims or have only had your policy for a short time (less than a year), your rates could change after a claim, and in some cases, you may be advised that your policy will not be renewed at the end of your current policy term. If you were at fault (caused a fire by smoking in bed, for example), the insurance company may consider that when setting the price for your next policy.