Renters Insurance for Apartments, Condos, Townhomes and Townhouses

Renter’s insurance generally covers property damage or loss caused by theft, fire, vandalism or storms. Losses due to weather-related floods  are not covered. In addition, the policies include liability coverage, which protects a tenant if someone gets hurt when visiting the home or apartment.


The cost of renter’s insurance is usually low because unlike homeowner’s insurance, it covers only personal property and liability, not the structure.


Two types of renter’s insurance coverage are available:


  1. Actual cash value insurance pays to replace items up to the policy’s limits, minus a deduction for depreciation.
  2. Replacement cost insurance pays the actual cost of replacing your possessions, regardless of depreciation, up to the limits on the policy.


Consider the value of your possessions versus the cost of insurance. Even a college student can have property worth a few thousand dollars, such as computers, televisions, furniture, jewelry or small appliances. If you have specific items of high value, you also may need a rider, which covers those items.