If you plan on renting an apartment or a home, your landlord is likely to require that you carry renters insurance. Renters insurance is designed to cover your personal belongings and liability risks in case of an accident, which also helps to protect the landlord from possible loss.
The amount of renters insurance a landlord may require varies, however. In some states, there is a cap on how much renters insurance a landlord can require you to have.
Types of Coverage
Not only can your limit requirements change under renters insurance but so can the types of coverage you carry. In general, you may be required to carry:
- Personal Belongings Coverage: Personal belongings coverage provides compensation for damages to or loss of your personal items caused by fire, wind, hail, lightning, smoke, theft, vandalism and more.
- General Liability Insurance: General liability insurance covers claims against you concerning bodily injury and property damage someone else may suffer on your rental property. If someone is injured in your apartment, for example, general liability insurance can compensate for medical bills while also protecting you from a related lawsuit.
- Additional Living Expense Coverage: Additional living expenses (ALE) cover living expenses related to temporarily moving while the rental space is being repaired or rebuilt after a disaster.
Also keep in mind that the amount of insurance your landlord requires is not necessarily how much insurance you should carry. Your renters insurance policy should be tailored to cover your personal items and any risks you may face as a tenant. This means your insurance needs may change depending on your lifestyle, location, personal belongings and other factors.
For example, many renters insurance policies have limited coverage for expensive items such as jewelry, furs and art. If you have expensive belongings like these, such as an engagement ring, you may want to purchase additional coverage or policy floaters.
What if I Don’t Have Renters Insurance?
If you don’t have renters insurance as required by your landlord, you could receive a warning or a fine. If the warning is not heeded within a certain time frame, you could have your lease suspended and face eviction.
Renters insurance requirements should always be explicitly stated in your leasing agreement. Be sure to check your leasing agreement and speak with your landlord if you have any questions about the renters insurance requirements you may face.