If it’s your first time renting a house or an apartment, or you’ve recently made a significant purchase like a new sectional sofa or an expensive bedroom set, you might wonder if you need renters insurance to protect your belongings while living in a military rental.
It only makes sense that you’re interested in taking care of your possessions, especially if you’re away for weeks or months at a time due to military service. You’re in the right place! We have all the answers to the questions you’ve thought about, such as, “Can I afford renters insurance?” and “Where can I buy it?”
How Much Does Renters Insurance Cost?
The amount you'll pay for renters insurance each month depends on a few things, like your location and the value of your personal property, but renters insurance is highly affordable for most people. Here’s an easy reference point: the national average for renters insurance costs an average of $170 per year or $14 per month.
For more detail, take a look at what the Insurance Information Institute reports as the most and least expensive state averages for renters insurance per year. It’s easy to see that renters insurance is a good investment if what you own is valued more than the average yearly payment.
The most expensive states for renters insurance premiums (averages):
- Mississippi: $258
- Louisiana: $243
- Alabama: $222
- Arkansas: $206
- Georgia: $205
The least expensive states for renters insurance premiums (averages):
- Minnesota: $132
- Iowa: $135
- Delaware: $144
- Idaho: $146
- Maine: $146
What Exactly Does Renters Insurance Cover?
Renters insurance protects your household items from fire, theft, weather, and water damage. Most policies will pay for replacements or send money for the total cost of your lost goods. When researching policies, it’s important to inventory everything in the house so you know how much coverage to buy.
You know that renters insurance covers the items in your rental house or apartment, but you may also be able to purchase coverage for:
- Stolen items, even away from home
- PCS shipments
- Temporary storage
- Damage from a power outage
- Various liability coverage: dog bites, slips and falls, medical bills
Additional Living Expenses (ALE) Coverage
ALE is the coverage a renters insurance policy provides if you have to leave your home temporarily because it’s too damaged. You could receive money for:
- Hotels
- Meals
- Laundry
- Rental furniture
- Pet boarding
- Moving
- Storage
Are My Valuable Collections Covered?
If you have an expensive collection you’re worried about, you can add extra coverage to your renters insurance through endorsements and floater policies. For example, renters who own extensive artwork, jewelry, baseball or stamp collections, and expensive electronics often add a floater policy.
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Why Can’t I Use My Property Owner’s Insurance?
The short answer is that the homeowner's policy doesn't cover your belongings in a rental. It covers the physical building from damages caused by fire, lightning, hail, wind, and water. Coverage depends on the policy details; for instance, vandalism protection might be included, but your personal possessions may not be.
Because homeowners policies don’t cover you, don’t be surprised if your lease terms mandate that you hold your own renters insurance. Landlords want the best, most qualified renters. For them, peace of mind comes from the fact you’re willing to take on the responsibility of renters insurance. Take the insistence on renters insurance as a good sign that your landlord is invested not only in their property but also in the landlord/tenant relationship.
Do I Need Renters Insurance in Military Housing or an Apartment?
Make sure you read the lease language. Each company is different, but at the very least, most highly recommend renters insurance if they do not outright require the coverage.
Get more information about renters insurance and living in military housing: Should I Have Renters Insurance in Military Housing?
How Do I Buy Renters Insurance?
If you haven’t already, now is a good time to inventory your household items to get a ballpark estimate of the coverage you need. You probably have more to insure than you realize.
Remember, the average policy is worth $20,000, but you want to buy enough insurance to cover a complete loss. Plus, everyone tends to acquire new things year after year, especially if you get married or start a family, so don’t let the policy age and not reflect the true amount of valued items you own.
Start with the companies you use for other insurance, like your car. They may offer savings if you bundle services. All major companies, like Allstate, Armed Forces Insurance (AFI), Farmers, Geico, Liberty Mutual, Nationwide, State Farm, and USAA, offer various renters insurance policies. Using a renters insurance comparison tool, like the one provided by Quote Wizard or Nerd Wallet, could also be helpful.
If you’re lucky, you’ll never have to use your renters insurance, but there’s a minimal downside to investing in protection each year, even if you don't have much to insure. You never know when an extra $500 will come in handy after you lose an entire refrigerator and freezer full of food due to a week-long power outage!
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