Every tenant should consider purchasing renters insurance. Renters insurance covers the renter’s personal property against loss or damage due to theft, fire, water damage, or other casualty loss. Generally, a tenant can choose between two types of coverage: replacement coverage, or market-value coverage. Replacement coverage is the more expensive of the two, because it pays for the full cost of replacing the damaged property. In contrast, market-value coverage simply pays the market-value of the property in its condition at the time of the loss. A renters insurance policy purchased by the tenant is the only insurance which will cover the tenant’s property in most casualty or theft situations. Though the landlord carries insurance on the building itself, that policy does NOT cover the tenant’s property.
Renters insurance is usually very affordable, running from $10 to $20 a month or $100 a year. Each tenant should compare prices from multiple insurers to find the best price and coverage for that tenant’s specific situation. Many insurers offer discounts if a tenant purchases multiple types of insurance, such as car insurance.