Q:Question I just got my first apartment! It’s tiny, and I don't own a lot of things, but my parents are encouraging me to get renters insurance. Here’s my question: Since my landlord already has insurance on the property, what reason would I have to get renters insurance?

We asked Valerie Webber, a Farmers Insurance^® agent based in Fort Worth, Texas, to provide some of her top reasons to purchase renters insurance.

A:Answer Simply put, renters need insurance to protect their stuff. As a renter, you don't own the structure you live in and you are not likely to insure it. The belongings inside your rental, on the other hand, are probably important to you. One reason to carry renters insurance is to have coverage for your belongings.

For example, renters could provide coverage in the event of:

• A kitchen fire. A renters policy could help with the costs to replace items destroyed in the fire. If your place can't be lived in while repairs are being done, renters insurance may also provide coverage for a place to stay, meals and related expenses.
  
• A burglary. Renters insurance could help with the costs to replace the covered stolen items.
• A guest falls and gets hurt. The personal liability coverage included in a renters policy could help with the payment of medical bills or other expenses related to the accident.

Before you decide that you don't have enough stuff to get damaged in a fire or what you have is not likely to be stolen, take a look around. You might see more items that are costly to replace than you'd expect. For instance, a smartphone, designer handbag, professional chef knife set, new laptop are all commonly used, high-ticket items. How about your grandmother's antique china? Even the cost of replacing all your clothes could put quite a dent in your savings.

What does renters insurance cover?

In general, renters insurance provides coverage for your belongings, such as clothing, household items and furniture. It also includes electronics and jewelry, although limitations may apply.

A renters policy also typically includes:

• Personal liability coverage — in case you are found legally liable for bodily injury or property damage to someone else in an accident where coverage applies.
• Personal property coverage – even when you are traveling and away from home.
• Additional living expenses – when you can't stay in your rental because of a claim.

Some renters policies will provide a replacement cost for a lost or damaged item. Other policies may provide cash value, which takes into account depreciation of your item before the payout. What’s the difference? Say you purchased a new sofa 10 years ago, the cash value that you'd receive could potentially be well under $100. But if the same couch can be bought brand-new, that dollar amount would be the replacement cost amount.

Is renters insurance expensive?

Not really, which is one of the best reasons to recommend renters insurance. While several variables can affect the cost of your premium, overall, renters insurance is a cost-effective type of coverage. In fact, according to the Insurance Information Institute, the average yearly premium for renters insurance is just under $200.

Talk to your local agent to help determine how much coverage you may want based on the value of what you own.

The information contained in this page is provided for general informational purposes only. The information is provided by Farmers^® and while we endeavor to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to this article or the information, products, services or related graphics, if any, contained in this article for any purpose. The information is not meant as professional or expert advice, and any reliance you place on such information is therefore strictly at your own risk.

Produced on behalf of the following specific insurers and seeking to obtain business for insurance underwritten by Farmers Insurance Exchange, Fire Insurance Exchange, Truck Insurance Exchange, Mid-Century Insurance Company, Civic Property and Casualty Company, Exact Property and Casualty Company, Neighborhood Property and Casualty Company, and their affiliates. In Texas, insurance is underwritten by Farmers Insurance Exchange, Fire Insurance Exchange, Truck Insurance Exchange, Mid-Century Insurance Company, Texas County Mutual Insurance Company, Mid-Century Insurance Company of Texas, and Texas Farmers Insurance Company. In New York, insurance is underwritten by Farmers Insurance Exchange, Truck Insurance Exchange, Mid-Century Insurance Company, and Farmers New Century Insurance Company, home office Los Angeles, California.

Each insurer has sole financial responsibility for its own insurance products. Visit farmers.com for a complete list of companies. Not all insurers are authorized to provide insurance in all states. Not all products, coverages and discounts are available in every state. Restrictions, exclusions, limits and conditions apply. See agents for details.

Related articles