You’ve made it to independence, which means holding a shiny set of keys to your first apartment. The kitchen is all yours, even if you don’t plan on using it much. And the days of waiting in line for the bathroom are over. You’ve also got more rooms than you know what to do with, and you’ll need more stuff to make the echoes go away.
When you’ve completed your buying spree, add one more necessary item to the list.
But Why Do I Need Renters Insurance?
I’m glad you asked. Here’s the thing. In a perfect world, nothing ever goes wrong. There are no accidents, no one gets hurt, and you are never to blame for anything. But you don’t live in that world.
Your new place may be an oasis, insulated from all the outside noise and chaos, but when people step across the threshold of your front door, you’re liable for any injuries they incur from an accident. And your landlord’s insurance policy doesn’t extend to the things inside your apartment. That’s where renters insurance comes in.
If your personal property gets damaged or stolen, renters insurance allows you to repair or replace those items. Your policy can also protect you if someone slips on the wet bathroom tile, breaks a limb, and decides to sue you. Not only will a renters insurance policy cover your legal fees, but it will also help pay for the medical bills. New renters don’t consider these things until it’s far too late.
Do I Still Need Renters Insurance if I Don’t Have a Lot of Stuff?
Maybe you didn’t go on a shopping spree like your fellow young renters. You’d rather eat out and invest your money in cryptocurrencies and NFTs than fill an apartment with needless furniture and kitchen appliances. We get it. Technology is your thing, and you’ve likely got a few expensive devices, like the one you’re reading this on.
Take the time to look around. You’ll notice items worth insuring because you don’t skimp on things you like. Forbid a fire rages, or someone breaks in and makes off with some of your precious belongings: a gaming laptop and console, jewelry, designer bags, sleek footwear, a bike, or an entire wardrobe. That’s a TikTok video you don’t want to make!
Consider how much it will cost you to replace all the things you think are not a lot. Are you reaching into your savings to buy back your stuff?
Fine, But How Much Will Renters Insurance Cost Me in CNY?
Now we’re talking. It’s cheaper per month than replacing the cracked glass on your smartphone. But let’s take a closer look.
When filing a claim to replace your possessions, you’ll pay a deductible that starts at $100. The lower the out-of-pocket deductible, the higher your monthly payments to the insurer. Higher deductibles come with lower monthly payments, which can average $12 per month.
Even if you opt for the higher deductible (which results in a lower monthly premium), your out-of-pocket cost on a claim is equivalent to a $1,000 smartphone. That’s the cost of one device to replace all your possessions—but within reason.
If someone stole the $10,000 diamond ring your grandmother willed to you, don’t expect to get the market value for that single piece of jewelry. An insurance company will place valuation caps on certain items. If you do have a high-priced jewelry item, think about scheduling it. Scheduled jewelry coverage means insuring your grandmother’s ring separately by supplying your insurer with a document that proves its actual value.
But let’s take a breath. Fine-tuning this to your unique circumstance requires you to contact us, and one of our insurance specialists will be happy to walk you through the entire process at your convenience.
So What Else Does Renters Insurance Cover?
A bit more. So far, we’ve highlighted personal property coverage, personal liability, and medical expenses.
Personal property: this is the primary function of your policy. It covers the stuff you own inside the apartment up to the policy limits. Payouts account for wear and tear or depreciation. And personal property is covered anywhere you are in the world. You’re covered even if your luggage is stolen from a Belizean hotel room while dining out.
Personal liability: many renters insurance policies start with $100,000 of liability protection that covers legal fees and damages if someone sues you.
Medical expenses: this is “don’t sue me” money that helps pay for minor medical bills a guest racks up if they suffer an injury in your unit and don’t want to take it to court.
Now, among the disastrous situations (or “perils”) that lead to property loss, renters insurance policies cover:
Fires: fires originating from a neighbor’s place or your unit (because you’re still learning to use the stove) and the smoke from those fires.
Storms: be they windstorms, hail, hurricanes, tornadoes, or lightning storms, all of which can damage personal property. It extends to fallen trees, utility poles, and other fallen objects.
Theft: you’re covered when an intruder makes off with your precious belongings. That includes vandalism.
Water and mold damage: the kind that results from burst pipes and sewer backups.
Snow and ice damage: when the excess weight collapses a roof during those frosty CNY winters.
What Does My Renters Insurance Policy Not Cover?
Floods: while a renters policy covers strong winds from a hurricane that can damage the things inside your apartment, flooding caused by the same hurricane is off the table. The same goes for other forms of external flooding, so consider getting flood insurance.
Earth movement: we’re talking about earthquakes, tremors, volcanic eruptions, lava flows, and even landslides. None are covered unless you have earthquake insurance.
Roommate property: if a roommate isn’t on your policy—and we strongly advise they not be—their belongings aren’t covered. Each roommate should have a separate policy to protect their individual belongings.
Boyfriend/girlfriend property: most insurers usually exclude any belongings owned by a boyfriend or girlfriend who regularly lives with you.
Having a place of your own is a big deal. There’s no question about that. It’s an exciting time for a young renter, but we want that excitement to last. Purchasing renters insurance will give you protection and peace of mind in case of loss or liability. You’ll want to inventory everything you own, note each value, and choose policy limits that cover you in full. But you don’t have to figure it all out on your own. We’re here to help.
Daniel is an accomplished content creator. He has been working in publishing for almost two decades. Horan Companies hired Daniel as its content manager in November 2022. The agency entrusted its messaging to him. Since then, Daniel has written insurance articles, service and pillar pages, and more. All in an effort to educate CNY readers. He's helping them understand the world of insurance so they can make informed decisions.