When is renters insurance required

Renters insurance can help mitigate the risks of pets with dog-bite liability and property damage coverage. Canine Journal points out that coverage can depend on the state, type of animal, and insurance company. If a tenant has renters insurance that may cover all or a portion of a loss, you can potentially lower the chance of your own premiums increasing.

While there are certainly advantages to requiring renters insurance, you still want to carefully screen who you let onto your property. SmartMove gives you detailed information and leasing recommendations, so you can choose the right tenant.

This content is for informational purposes only and may not be applicable to all situations. Coverage subject to terms, conditions, and availability. Policy issuance is subject to qualifications. Connect With Us. Update Below.

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Your update should be done soon. This feature is not currently available. Our opinions are our own. Here is a list of our partners and here's how we make money. Could you afford to replace your entire wardrobe if your apartment caught fire? What about your phone, your laptop and all your furniture?

If the answer is no, you probably need renters insurance. And the coverage may cost less than you expect — in fact, some tenants could pay next to nothing. Find out why you may want renters insurance and how affordable it can be. But you might be surprised. Pays for hotel stays, restaurant meals or other expenses if you have to live elsewhere while your home undergoes covered repairs. Pays out if you're responsible for injuries to other people or damage to their property.

Covers injuries to other people in your home, regardless of fault. Most renters insurance reimburses you for the loss of items such as clothing, smartphones and other personal belongings due to 16 specific events:. Accidental discharge of water or steam from within certain household systems or appliances. Sudden and accidental tearing apart, cracking, burning or bulging of certain household systems. Freezing of certain household systems or appliances.

Certain sudden, accidental damage from artificially generated electric currents. So if your bike is stolen outside a store, your renters insurance policy will cover you — with a couple of caveats.

First, your deductible will apply. How it works: Lightning hits your apartment building and starts a fire that burns through your living room. Your renters policy will pay for your damaged belongings, including things like your couch and TV, minus your deductible. If you can't live in your home after a disaster covered by your policy, renters insurance coverage generally pays for you to live elsewhere during repairs. It can cover expenses like hotel bills, restaurant meals and other costs above what you would normally pay.

How it works: After the fire in your living room, you need to move out for a couple of weeks while your apartment is cleaned up and fixed. Your insurance company can help pay for your motel stay. It can also cover the cost difference between making your own meals as you normally do at home and eating out every night as you do while you're living at the motel. If someone is injured in your rental and sues you, a lawsuit could wreck your finances for years.

One exception: If you injure someone in a car accident, your auto policy would handle the expenses. Renters liability insurance also covers damage you and your family accidentally do to others' belongings.

Your renters policy may pay out if your dog bites someone. However, some insurers exclude dog bites or certain breeds from renters policies. Renters insurance typically covers legal representation in a lawsuit and any money awarded to the other party.

How it works: You start filling your tub for a bath, then get distracted by an argument between your kids. By the time you get things settled down, your tub has overflowed. The water seeps through the ceiling, ruining a leather sofa in the apartment below. Your downstairs neighbor sues you.

Like liability insurance, this coverage pays out if someone is injured on your property. What's the difference? Liability coverage also tends to have much higher limits. How it works: A visiting friend trips over your son's toy truck and lands on her wrist. Luckily it's just a sprain, but your medical payments coverage can reimburse her for her X-ray and urgent care appointment.