How Renters Insurance Works for a House

Renters insurance is often discussed in regard to apartment tenants. What some people don’t realize is that renters insurance can also be used for tenants that are renting a home or a room within a home.

Renters insurance is different than home insurance in many ways. First, if you are only renting a home, you will need renters insurance rather than home insurance. Home insurance should be covered by your landlord or the owner of the home.

What Does Renters Insurance Cover for a House?

Although you live in a home rather than an apartment with many tenants, the coverage is essentially the same. Just like with an apartment, renters insurance is not designed to protect or compensate for the physical dwelling. Instead, renters insurance is tailored to cover your specific needs:

• Personal Belongings coverage provides compensation for your personal possessions if they are lost or damaged due to fire, wind, hail, smoke, lightning, theft, vandalism and more. Some items (such as jewelry, art and furs) have limited coverage due to their value and may need to be covered under an additional policy floater.
• General Liability covers claims of bodily injury or property damage you may cause someone else.
• Additional Living Expenses helps with the costs associated with temporarily moving elsewhere while the property is being repaired or rebuilt after a disaster.

Any damage to the physical dwelling itself should be covered under your landlord’s home or property insurance policy. This doesn’t mean you can’t be held accountable for certain damages, however. If you accidentally start a fire and damage the kitchen counter and ceiling, the landlord can file an insurance claim and sue you to cover the rest of the damages.

Does My Landlord’s Flood Insurance Cover My Belongings?

Basic home and renters insurance policies do not include flood or earthquake coverage. These incidents must be covered under an additional flood or earthquake insurance policy. If neither you or your landlord has flood insurance, you may both have to pay repairs and replacements out of pocket.

Say your landlord has flood insurance but you don’t. Will you be covered under their policy? In general, you may receive some compensation for your belongings, but it’s recommended that you carry your own flood insurance, especially if you have high-value items or live in a place with a high rate of floods.

Is Renters Insurance More Expensive for a House?

Living in a home or an apartment has little impact on the cost of your renters insurance. The same factors that influence the cost of insurance include:

• Location
• Claims history
• Credit score
• Safety measures
• Coverage limits

• Deductible
• Value of insured items

Having safety measures in the home can lower renters insurance rates. Where most apartments are already equipped with certain safety systems, homes may not be. Before moving in, make sure the home as an updated fire alarm, burglar system, locks, a fire extinguisher and yard lights.

Prices also rely heavily on how much coverage you have. Most renters insurance policies start with $100,000 of general liability and $10,000 in personal possessions coverage. The average cost of renters insurance in the U.S. is 15$ a month, though some policies can cost as low as $5 a month.

Since claim history may affect the cost of your insurance, carefully consider the damages before filing a claim. If the cost of your deductible is much higher than the price of replacing or fixing the damage, you may not want to file a claim. If the damage costs more to replace than the deductible, it may be wiser to file a claim for compensation.

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