Spend now or save for later? It’s an age-old dilemma that hits closer to home now more than ever. While deciding against buying a 4K television or postponing your Hawaiian dream vacation can be sound financial decisions, one corner we suggest not cutting is purchasing renters insurance.
Imagine coming home from work to find your apartment broken into and completely ransacked—gone are your expensive stereo system and fine china. Or even worse, suppose you return from a long weekend only to discover there was a fire in your kitchen. You can’t assume your landlord will pay for your damaged or lost possessions. In fact, you can probably assume they won’t. You’ll need a renters insurance policy to help recoup your losses.
Unfortunately, renters insurance often falls under the radar. Approximately 80% of renters do not carry renters insurance. That’s a staggering number considering a typical policy only costs between $150 and $300 a year—depending on where you live. For this reason alone, renters insurance is an excellent idea for anyone who rents a house, apartment, condo or other home.
How Much Coverage Do You Need?
The first step in purchasing a renters insurance policy is adding up the cost of everything you would want to replace if it were damaged or stolen—including clothing, electronics, furniture and appliances. Write down the serial numbers of appliances and electronics. In case of a fire, keep a copy of the list somewhere outside your home (at work, perhaps). You also may also take photos or make a videotape of your most valuable items. That will make it easier to make a claim on them if they are lost or stolen. (Read more about how to create a home inventory here.)
Something else to take into consideration is “actual cash value” (ACV) or “replacement cost coverage” for your belongings. As the name implies, ACV coverage will pay only for what your property was worth at the time it was damaged or stolen. With an actual cash value policy, if a tree falls through your window and destroys your computer that cost $2,500 when it was new four years ago but is now only worth $1,000, you will only receive $1,000 (minus your deductible) for the damaged item. Replacement cost coverage, on the other hand, will pay what it actually costs to replace the items you lost. Replacement cost coverage will cost you more in premiums, but it will also pay out more if you ever need to file a claim.
What Else Is Covered?
Personal Liability Coverage provides protection for you, the renter, and anyone who may visit your home or apartment in case of an accident. If a person who is visiting you is injured in some manner, you will not be held liable for the injuries. If necessary, your policy may even pay for your legal defense in these circumstances.
Loss of Use/Temporary Housing will cover you if your home or apartment is rendered unlivable by a fire or other disaster. Generally, this coverage provides temporary relocation housing while your residence is repaired or rebuilt.
Car Interior – Many renters insurance policies also cover possessions that you keep in your car (CDs, books, portable computer equipment). Note that the car’s value itself is not covered, and typically installed stereo equipment (which is often considered “part” of the car’s systems) is not insured either.
What’s Not Covered?
Earthquakes, flood and landslide protection are not commonly included on rental insurance policies. If you live in an area where these natural disasters are common, coverage for your personal possessions lost in one of the aforementioned occurrences must be purchased as add-ons or via separate insurance policies altogether.
Ready to purchase a renters insurance policy? We’ve got good news for you—GEICO can help. Call us at 1-800-841-2964 to speak with a licensed insurance agent or get an online renters insurance quote.
The above is meant as general information and as general policy descriptions to help you understand the different types of coverages. These descriptions do not refer to any specific contract of insurance and they do not modify any definitions expressly stated in any contracts of insurance. We encourage you to speak to your insurance representative and to read your policy contract to fully understand your coverages.
By Chris McLaughlin
Nancy Baker says,
I already have renters insurance through Geico.
Hello. Does the Geico Renters Insurance cover personal liability as well? My building requires both Personal Liability Insurance and Renters Insurance.
Yes, there is an element of liability coverage included. Here is a guide to what is covered: https://www.geico.com/information/aboutinsurance/renters/
Tonja Allison says,
I need Renters insurance can I het a quote
Yes, please go to geico.com/renters-insurance.
Barbara PLACE says,
Have a two bedroom apartment, with kitchen, living room bathroom. What does the insurance cost. Both monthly and yearly
Hi! You can start a quote here: https://www.geico.com/renters-insurance/
David K. Akao says,
My name is David K. Akao and I currently have Automobile Insurance coverage from GEICO and an very pleased. I am also searching for Life Insurance, in addition to my employers coverage, that includes cash value, perhaps Whole Life or Universal Life Insurance. I would prefer to have all my Insurance coverage under one company. Please respond when time allows. My family is growing and I would regret not having any Insurance to cover later expenses, which is inevitable. Please respond to my request when time allows. Thank you very much.
Hello, David! We do offer term life insurance through the GEICO Insurance Agency. More info can be found at geico.com/life-insurance. Have a great day!
I could not be happier! Geico saves me money and has my back!
.We already have one with you
Paige Smith says,
As a college student, I never really think about rental insurance. However, I think I really should. Especially since I am renting an apartment.
Kyle Ross says,
I didn’t realize renters insurance could be so cheap! My wife and I are currently living in a rented home, but we don’t have renters insurance yet. Now, knowing the low cost and high benefits of having insurance, we will definitely look into setting it up. You never know when something could happen, so it’s best to be prepared!
Bob Conway says,
Last year I moved to an apartment where renters insurance was required for all residents. I resented being forced into it but had to pay. After heavy rains, I was shocked to find water had seeped UP from the foundation, through the carpet and soaked into a few dozen record albums. You know … those 12″ vinyl things with paper jackets. Suddenly I was very thankful I had renters insurance until reading the policy to find out water damage was NOT covered.
But if the place ever burns down … I’m good (maybe)! 🙂
I really appreciate the information about the insurance. It was very informative and gave me knowledge that I need since I’m renting.
Kervin Franco says,
Excellent information to share with your client, I truly appreciate that Geico takes the time to educate the customer in understanding policy information.
Thanks Geico for the peace of mimd,
T coop says,
Is there a bundle discount for home and auto insurance?
Judith Jones says,
I have car insurance with you, and wondered if there is any discount having renters insurance also.
Kervin Franco says,
I have this two policy for my vehicle and renters insurance with Geico……..
Diane Ashworth says,
I own several expensive fur jackets. They are in cold storage now. Can they be insured in a rental policy? I’m renting from my brother and pay a monthly fee. Thank you for your time. Diane