Your landlord insures the building. Renters insurance insures you, what is yours, what you could be liable for, and where you would stay if the rental became unlivable.
What renters insurance covers
A standard renters policy has three core parts. Personal property covers your belongings against covered causes of loss like fire, theft, and many types of water damage. Personal liability covers you if you are responsible for injury or damage to others. Loss of use pays added living costs if a covered loss forces you out temporarily.
| Coverage | What it does |
|---|---|
| Personal property | Repairs or replaces your belongings after a covered loss |
| Personal liability | Pays for injury or damage you are responsible for |
| Loss of use | Covers added living costs while the rental is unlivable |
What it does not cover
It does not cover the building, which is the landlord’s responsibility. It usually excludes flood and earthquake, which are separate. High-value items like jewelry or electronics may be capped unless you schedule them. And normal wear, pests, and maintenance are never covered.
Replacement cost vs actual cash value
As with home insurance, replacement cost pays to replace your belongings new, while actual cash value subtracts depreciation. Replacement cost costs a little more and pays a lot more after a real loss, which is usually the better choice.
Why renters insurance is worth it
For most renters, the premium is small and the protection is large. A single fire, theft, or liability claim can exceed years of premium. Many leases now require it, and it can also extend liability protection beyond the apartment.
What Vantage Point looks for when reviewing this
When we set up renters coverage, we check that the personal property limit actually reflects what you own, that liability is high enough for your situation, that valuables are scheduled if needed, and that the policy is replacement cost rather than actual cash value.
Questions to ask your advisor
- Does my personal property limit reflect what it would actually cost to replace everything I own?
- Is the policy replacement cost or actual cash value on my belongings?
- Is my liability limit high enough for my situation?
- Do I own valuables that should be scheduled because they exceed standard limits?
- If I have roommates, who is covered, and who needs their own policy?
Want guidance first? Compare your coverage. Already know what you need? Get a quote.