Your landlord’s insurance will cover damage to a building or home you rent, but it will not cover your personal items, and yet only 40 percent of renters purchase renters insurance. But renters insurance is usually affordable. For people who rent, renters insurance typically includes three types of coverage—personal property coverage, loss of use, and personal liability. Keep in mind that flood damage is not covered with renters insurance. Also remember, if you are a dependent, your parents’ home-owners policy may cover your belongings even if you are not living at home.
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Teaching Suggestions
- Ask students if they are living on their own and renting an apartment. If so, do they have renters insurance?
- Ask students to call local insurance agents to get quotes for renters insurance. Do you have to pay extra for expensive items you own?
Discussion Questions
- What can you do to cover losses to your personal property due to floods or other acts of God?
- What actions can you take to reduce the cost of renters insurance? Should every renter purchase renters insurance? Why or why not?
Melissa Hart
Focus on Personal Finance, 7e 