Renter’s Insurance: What it is and Why it is Useful

60% of renters don’t have renter’s insurance. Although it’s not required of tenants off-campus, it is highly suggested ESPECIALLY as a college student.

  • What is renter’s insurance?

    • It provides liability insurance and the tenant’s personal property is covered against named perils such as fire, theft, and vandalism. It also pays expenses, when the dwelling becomes uninhabitable.
  • When do you need rental’s insurance?

    • Break-Ins/Theft 
      • This is evidently not an ideal situation, but it happens frequently especially in an urban area like Lexington.
    • Injury at your Apartment
      • Social gatherings, especially those involving acholic beverages, may allude to injuries. If you are the host or owner of the space in which the party is being thrown at, you may be held responsible for these injuries.
    • Fire or Smoke Damage
      • Although most rentals provide smoke alarms, sometimes situations can get out of hand and property may be damaged due to accidental situations.
    • Damage to Belongings
      • Whether it’s a smashed wall or torn up furniture, some of these damages will rack up some serious cash into your expenses.
    • Natural Disasters
      • Although Lexington is not a diaster-prone area, it is a good idea to get your apartment covered from storms, or even tornadoes that may unexpectedly emerge in the area .

 

  • What does rental insurance cover?

    • Personal Property Coverage
      • This includes your own personal belongings. If something happens and your clothes, furniture, books, etc. get damaged or stolen, these will be covered through insurance.
      • You’ll want to set coverage limits that are appropriate for your situation. Depending on how much you own and value, this differs for everyone. A good idea may be to write up a home inventory, or a list of what items you personally own and their respective values.
    • Liability Coverage
      • This coverage may help protect you from paying out of pocket for certain costs if you are found legally responsible for injuries to other people or damage to their property.
      • This coverage is especially relevant with injuries (think parties) on your property in which you would be held responsible for.
    • Additional Property Coverage
      • This coverage may help pay for additional costs you incur, such as hotel bills, or for the increased costs you incur on food that is above the amount you would typically spend because you are unable to live in the home you’re renting.
      • This may happen if your apartment is damaged, burned, etc.  to the point that makes the space unlivable. 

 

  • How can I get Renters Insurance?

    • Get a free renters insurance online or in person
    • Additional savings with insurance
  • Is Renter’s Insurance Expensive?

    • For the most part–no. Most renter’s insurance packages in Kentucky equate to buying a cup a coffee once a week for a year. 
    • The average rental insurance package in the state of Kentucky is around $171 a year. When you think about how much your expenses would be without insurance if something were to happen, this is nothing!

As you can see, rental insurance is an inexpensive, relevant, and beneficial investment that all college students should at least consider when renting out their own place. These situations happen more than you would think, and it’s always best to be prepared and avoid huge expenses due to unexpected events and circumstances. 

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