Renter’s Insurance: How Pennies a Day Can Save You Thousands

Do you have renters insurance? Have you ever even heard of it? If not, you’re certainly not alone as surveys have found that less than 40% of those who rent carry a renters insurance policy. When you consider the fact that 95% of home owners have homeowners insurance, it’s clear to see that renters insurance has a real awareness problem.

Despite its apparent lack of popularity, I’ve had quite a few random run-ins with renters insurance over the years. As I’ve mentioned before, the first of these encounters came while watching an episode of Friends. In this particular episode, Rachel’s father is appalled to learn that the Manhattanite doesn’t have a renters insurance policy of her own. Years later, I ended up participating in a focus group where I offered State Farm my insight on how they could explain the concept of renters insurance to others my age.

Even after those events, it wasn’t until I moved to Missouri when I finally decided it was time to look seriously at renters insurance. That’s when I discovered how inexpensive it really was. Given this realization, I want to take a in-depth look at renter’s insurance — including what it is, how it works, how to save money on your policy, and more — in hopes that you won’t put off purchasing this important product as long as I did.

What is renters insurance?

Renters insurance is a policy that’s specifically intended to meet the needs of those who rent their homes as opposed to those who own property. While homeowners insurance policies may mostly be intended to cover damage to the houses and structures themselves, renters are rarely responsible for such things. Because of this, renters insurance policies instead focus on protecting what is in the home — e.g. your possessions. Read more: