Renters insurance protects furniture, clothes and a tenant’s personal property. Instead of potentially having to re-buy the entire contents of your rental home, you could be insured for as low as $20 a month, or less than $250 per year. Coverage includes losses from fire or smoke, vandalism, theft, and water damage, including if an upstairs neighbor’s tub overflows and damages items in your unit below. The coverage also often covers temporary housing if a rental home needs to be repaired or rebuilt. But even though renters insurance is affordable and provides comprehensive protection, according to the Insurance Information Institute only around 65% of renters buy this coverage.
