Renters insurance provides financial protection against the loss or destruction of your possessions when you rent a house or apartment. Some landlords require you to have renters insurance, but even if it’s not required, renters insurance is still a smart investment. It is always better to be prepared for the unexpected. 

While your landlord may be sympathetic to a burglary you have experienced or a fire caused by your iron, destruction or loss of your possessions is not usually covered by your landlord’s insurance. Because, in most cases, renters insurance covers only the value of your belongings, not the physical building, the premium is relatively inexpensive.

What is renters insurance?

By purchasing renters insurance, your possessions are covered against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm, electrical malfunctions and water damage (not including floods). Like homeowners insurance, renters insurance also covers your responsibility to other people injured at your home or elsewhere by you, a family member, or your pet, and pays legal defense costs if you are taken to court.

There are two ways in which renters insurance reimburses. 

  • Actual cash value: pays what the property was worth at the time of damage.
  • Replacement cost: pays the full cost of replacing the items with new ones.

Do I actually need renters insurance?

Too often, people think they don’t have enough property of great enough value to make a renters insurance policy worthwhile but you probably do. And you probably own enough items of value that you wouldn’t be able to finally replace in an event that something were to happen. 

Even if it is just a short term rental,  renters insurance policy is always a good idea. Most renters insurance policies are fairly inexpensive and are easy to obtain. No matter how careful you think you are, accidents still happen. You can’t control your neighbors and unfortunately, if something happens to your residence that was caused by someone else there is not much insurance can do if you don’t have a policy that is made for incidents like this. 

What does renters insurance cover?

Renters insurance policies have three basic coverage components: personal possessions, liability, and additional living expenses.


Personal possessions coverage is for the contents of your unit or rental. The cost to repair or replace your belongings, such as clothing, furniture, jewelry and electronics, up to the limits in your policy.


Liability coverage helps cover the cost for repairs if you accidentally damage someone else’s property or a guest’s medical bills if you’re found responsible. It also pays any court judgments as well as legal expenses, up to the policy limit. 


If residence becomes uninhabitable due to one of the covered peril, this coverage helps with additional costs you incur, like hotel bills, restaurant meals or temporary rentals.

What isn’t covered in renters insurance?

Often excluded from coverage by your renters insurance are:

  • Damages from major natural disasters, such as a flood or earthquake.
  • Damage to the structure of the building you’re renting that is not stated in peril. 
  • Infestations. (Termites, bedbugs, etc.)
  • Personal property loss over your coverage limit
  • Liability protection over your coverage limit

Choosing the right coverage for your renters insurance policy

A renters insurance policy protects you and your belongings from the unexpected. At OnPoint Insurance Services, we don’t just sell insurance policies, we build relationships with our customers to provide the protection they require. Let us help you determine how much coverage you want to take out in your individual renters insurance policy.

By providing one-on-one service, our insurance agency can better understand your specific obligations and demands, giving us the tools necessary to find the coverage that best fits your lifestyle and most importantly your budget. Find the right coverage for your renters insurance policy today.