Renters Insurance: What it Covers, When You Need It, and How to Find the Right Coverage

Most renters are not required to buy renters insurance, but it can provide peace of mind and guard against accidents. Experts weigh in on when you need renters insurance, what it protects, and how to find the right coverage for your home or apartment.

Families understand the importance of protecting their assets and possessions. For a growing number of homeowners and renters, protection plans provide peace of mind that their possessions can be repaired or replaced if the unexpected happens.

Renters Insurance

For about 37 million Americans, renting a house or apartment is more affordable, and sometimes even preferable, to home ownership. But there are some disadvantages to renting. According to the Bureau of Justice Statistics, renters are 50 percent more likely than homeowners to be robbed. Likewise, the National Fire Protection Association reports that 270 apartment fires break out each day in the United States. While homeowners are required to have insurance against these types of problems, most renters are not. In fact, a survey by Apartments.com found that 67 percent of respondents did not have renters insurance.

"Renters insurance is one of those things you hope you never need, but accidents do happen -- and it pays to make sure you and your property are fully protected," says Kathy McDonald, president of Property Solutions at Assurant Specialty Property. "In addition to protecting your possessions, renters insurance can protect you against personal liability, too. If you accidentally start a kitchen fire or flood in the bathroom and it damages your apartment or a neighbor's apartment, you're the one that's liable, not your landlord."

How to Get the Right Coverage

Your insurance agent can give you specifics based on your state and the kind of policy you want. Ask questions such as:

-What hazards are included? Do I need a separate policy for specific circumstances?