Your landlord may have property insurance, but their policy doesn’t apply to your belongings or cover you when an accident happens. Without renters insurance, you run the risk of paying out of pocket for loss or damages.
Renters coverage in real life
Here are a few common scenarios when a renters policy comes in handy.
- Upon returning from a long weekend away, you discover your place was broken into and your bike is missing. Personal Property coverage can help you replace your stolen bike and any other items that are missing.
- During a party at your place, someone slips on the kitchen floor and breaks their wrist. You’ll be protected from any legal claim this person may bring against you with Liability coverage.
- A pipe bursts in your apartment and it becomes unlivable. Additional Living Expenses coverage will pay for temporary lodging while the pipe is fixed.
The initial amount you pay out-of-pocket before coverage kicks in. In most cases, you pay this upfront in the event of a claim, even if you were not at fault.
The total amount that you pay for an insurance policy.
An add-on that provides extra coverage for items your renters policy doesn’t offer. Standard renters policies only offer limited coverage for things like jewelry or fine art, so if their value exceeds the limits of your policy, a rider can be a good option.
Actual cash value
The current market value of lost or damaged property at the time of loss. This usually factors in depreciation.
Additional living expenses
Any necessary expenses you incur while you’re unable to be in your home due to a covered loss.
For more helpful definitions, check out our Insurance Glossary.
How much coverage do I need?
The coverage you need depends on a variety of factors, such as:
- Your net worth
- What you need to protect your property against
- The value of your property
- How much risk you’re comfortable with
As a rule of thumb, you should purchase enough to cover the full amount of your personal property, including your clothes, electronics, furniture, kitchenware, and other items you own.
Our Renters Coverage Calculator can help you determine how much coverage you need. Just answer a few questions and we’ll figure out the right amount of coverage for you
About Liability coverage
Liability comes standard with a Liberty Mutual Renters policy. This coverage means you’re protected if you, your family member, or your pet injure someone or their property. You can also consider no-fault medical coverage, which means your insurance company will foot the bill for someone’s medical bills if they’re injured in your home. Your policy’s liability portion could also cover the cost of a lawyer to defend you in court and the cost of court awards, up to your policy’s limit. These limits usually start at about $100,000, but you can choose to buy more coverage1.