Here’s what a renters insurance policy covers — and why you should have one
A six-alarm fire Monday at The Cooper apartments in Fort Worth displaced all 834 residents in the complex’s two buildings and damaged or destroyed multiple units.
Some tenants told the Star-Telegram they were concerned about their renters insurance policies, saying that according to the lease, they were required to pay a monthly fee that was included in their rent cost for insurance, and that they received mixed signals from management regarding the necessity of third-party insurance. Residents said they talked to people who worked in the office and were told they didn’t need both types of insurance, even though the insurance that’s included in the rent doesn’t cover the tenants’ items.
An average of 343,100 house fires are reported in the U.S. every year, according to 2023 data from the National Fire Protection Association. Every year, those fires cause more than $7.6 billion in property damages.
Sudden disasters are plausible for anyone, so renters knowing how to protect themselves and their belongings is important. Here’s what to know about renters insurance.
What is renters insurance?
Renters insurance typically offers three types of coverage, according to the Texas Department of Insurance (TDI):
- Personal belongings: If any personal items are stolen, damaged or destroyed (by fire, smoke, vandals or thieves) and are covered in the policy, renters insurance covers the cost.
- Emergency living expenses: If you’re forced to leave your apartment for things like emergency maintenance, renters insurance typically covers the cost of temporary housing and essentials like food.
- Liability: If a friend gets injured in your rented home and you’re held liable, renters insurance protects you and pays legal fees.
Renters insurance includes damage or destruction by fire, but damage from floods and earthquakes are typically not covered by renters insurance, according to State Farm. However, each plan and each company differs in what they offer in renters insurance.
Coverage typically assesses personal belongings based on what they will sell for at the time of damage or destruction, according to TDI. For example, coverage for a laptop bought at $1,300 but on the market for $500 at the time of damage would be worth $500 with many basic renters insurance policies.
TDI reported that the average renters insurance in Texas costs about $20 per month. State Farm stated that renters insurance averages $15 per month nationally, and those plans can include up to $35,000 of personal property coverage.
Renters insurance is different from homeowners insurance, according to Progressive. Renters insurance only includes personal belongings in an apartment or rented house, while homeowners insurance also includes the structure itself.
Should you get renters insurance?
Many landlords require that tenants have renters insurance in their lease agreements, according to TDI.
The Fort Worth Star-Telegram spoke to United Services Automobile Senior Communications Manager Andrew Femath about the uses of renters insurance. He highly recommended having renters insurance for its price and breadth of coverage.
“It could cost, like, a pizza a month, and it gives very expansive coverage,” Femath said. “This could be everything from a fire, or if your items get stolen or even if one of your guests or visitors falls and gets injured in your property.”
For the tenants of The Cooper apartments, Femath said he couldn’t give a firm yes or no to what personal items would be covered, as the coverage differs plan to plan.
“Here’s what I will say: Your items are covered,” Femath said. “So as long as you have that renters policy and you don’t have situations of other external factors coming into play, your renters coverage is specifically for your items.”
If a renter is still under their parents’ homeowners insurance, their belongings may be covered by their insurance even living outside of the home, according to TDI.
Renters insurance plans differ widely. USAA includes flood and earthquake damage in its coverage, but it excludes some types of water damage and any personal items stolen from vehicles.
The most commonly used renters insurance companies include State Farm, Allstate and Liberty Mutual, according to Simply Insurance.
TDI recommends taking an inventory of your belongings and their cost if interested in buying renters insurance.
Star-Telegram staff writers Fousia Abdullahi and Harriet Ramos contributed to this report.