What Your Clients Should Know About Renters’ Insurance

Renters’ insurance has many layers, and your clients need to know the details before signing the dotted line. Your job as an insurance agent is to educate them about everything they need to know. Likewise, they must know about the harmful situations that it covers. But what is the basis of renters’ insurance? 

Renters’ insurance coverage is a specialized property insurance that protects dwellers from the liability risks of renting a property. In this article, we’ll talk more about what renters’ insurance is and why having one is an absolute must.

What Does Renters’ Insurance Cover?

There are three key things a renters’ insurance policy covers: liability, personal possessions, and additional living expenses.


Liability coverage protects the tenant if they face a lawsuit due to injuries or damages they caused at their home. Likewise, it also covers injuries their family, friends, or pets caused. It covers court judgments and legal expenses up to their policy limits. 

Typically, the coverage starts at $100,000 and can increase to a minimum of $300,000. But if higher coverage is required, they may consider purchasing an umbrella policy.

Personal Possessions

Personal possessions coverage protects the dweller’s belongings from named perils such as fire, vandalism, theft, specific weather-related damage, and other specified hazards. 

Additional Living Expenses

Additional living expenses coverage becomes essential when a rented unit becomes uninhabitable due to a covered peril. It covers temporary housing expenses, including hotel bills, restaurant meals, and more, while the dwelling is being repaired or rehabilitated.

What Doesn’t It Cover?

Depending on the insurer, specific events and items like sewage backup, earthquakes, floods, and other “acts of God” may not be covered. 

Moreover, suppose the property owner has unusually expensive or valuable items like high-end electronic equipment, musical instruments, or a useful collection of art and antiques. In that case, they may need to consider purchasing floater insurance as a rider. 

Renters’ insurance policies may also not cover wind damage from hurricanes and losses caused by tenants’ intentional acts or negligence. 

What Is the Difference Between Renters’ and Homeowners’ Insurance?

Homeowners insurance not only covers personal belongings but also protects the structure of the building itself. On the other hand, renters’ insurance primarily focuses on protecting a tenant’s personal belongings and providing liability coverage.

Can Roommates Share Renters’ Insurance?

In theory, yes. But, adding a roommate to the policy means that the coverage will extend to their belongings as well. While this may seem convenient, it can also lead to reaching the coverage limits more quickly due to the increased value of combined possessions. 

Moreover, if one of the roommates moves out, adjusting the policy can become extra tricky, especially if the parting could be more amicable.

About Snyder Specialty

Snyder Specialty, LLC is a New York-based underwriting facility that provides a range of property and liability solutions for personal and commercial lines. Specializing in coastal properties and hard-to-place risks, Snyder Specialty expands your current capabilities with proven solutions for complex risks. Find out more about the company’s range of services by calling (718) 362-8039