It’s not just homeowners who need to have insurance to protect themselves and their property. Those who are tenants in an apartment should have insurance as well.

An astonishing 53% of all homeowners who rent their home don’t have tenant insurance. Many of them go without because they either think it is too expensive, or they mistakenly think they don’t need it. Both of these notions couldn’t be further from the truth.

The Cost of Tenant Insurance

How much tenants will need to fork out for renters insurance depends upon a number of factors. Those living in the city will most likely pay more than those who are renting an apartment in a rural area. Besides location, however, something that greatly influences the cost of tenant insurance is the value of the tenant’s personal belongings.

In most instances, a policy that covers $100,000 worth of contents costs as little as $200 a year. When looking for affordable tenant insurance, renters should always receive quotes from a variety of insurance companies, as the cost can vary widely.

For full-time university students who absolutely cannot afford tenant insurance, their parent’s homeowners insurance may provide some coverage for their belongings.

What Gets Covered Under Tenant Insurance

Apartment dwellers may think that their personal belongings are not that valuable. However, once they begin to add up their phones, computers, furniture, clothing, silverware, and other belongings, the value can add up in a hurry. Having a tenant insurance policy is a way of protecting these items in the case of a fire or getting stolen.

Personal belongings don’t necessarily need to be in the home in order to be protected. Many policies will also provide coverage when personal items are in the policyholder’s vehicle or if the property is gets damaged at another location.

It’s important to note, there are some types of belongings that have a maximum coverage limit. Some of these items include:

• Pets
• Collectibles, such as stamps, coins, etc.
• Vehicles such as bikes
• Expensive jewelry and accessories
• Works of art such as paintings and drawings

Renters also need to be aware that their belongings may not be covered in any type of peril. For example, some property may be covered if it received water damage, but won’t be covered if the property was damaged as a result of a natural disaster, such as a flood.

In most instances, personal property is covered by either paying out on the actual cash value of the property, or the replacement cost.