It has become very common for landlords to require renters to have a renters insurance policy. This is because this type of policy provides additional protection to the landlord if an accident or injury occurs on the property.

Here is an example. If your satellite dish flew off the roof and caused injury or property damage, a claim could be made on your renters policy. If you didn’t have one, the injured party can try to claim against the landlord.

A renters policy will have two main types of coverage. One coverage will be for your personal property. You usually get $10,000 or more for it. The landlord will be more interested in you having liability coverage. Typically, homeowners will require you to have at least $50,000 in liability coverage. Some homeowners will want a limit of $100,000 or even more. The cost of increasing the liability limit is very low, so you may want to increase it even if you don’t have to.

Most renters policies will have a variety of other benefits. If your residence sustained covered damage, a good policy would cover the cost of renting a temporary place to stay while repairs are made. Your policy may also provide emergency first aid to others at the time of an insured accident. There may also be coverage for your personal property away from home. An example of this could be if property was stolen from your car. Property outside the home will generally be a percentage of your total personal property limit. Some policies will also provide identity theft coverage. If someone misuses your identity, this can help cover damages.

Fortunately, this type of policy is quite inexpensive. I’m in the Houston, Texas area, and a minimum policy is usually around $10-$14 a month. For inland areas with a reduced risk of hurricanes, the rate will likely be lower. A renters policy will usually qualify him for a discount on his auto policy if he gets it from the same company. As an insurance agent, I suggest you consider this type of policy if you are a renter. Even if the owner does not require it!

As a disclaimer, there are many different types of policies, so ask your agent to review what is covered. Be sure to ask your agent what updates are available. All policies have conditions and exclusions, so the features may vary from what I have described.