Sometimes, it seems like every time you turn around, someone is recommending you get insurance for something. You know car and home insurance are necessary and often legally required. Health insurance isn’t a legal requirement, but it’s definitely nice to have. 

So, what about renters? Should you get insurance if you’re renting a home, apartment, dorm room, or condo? The short answer is yes. You should have renters insurance in New Jersey. After all, there’s no reason not to protect your belongings even if you’re renting your home.

Why Renters Insurance Is a Good Idea

Most homeowners typically have insurance, and sometimes, the mortgage lender requires it, especially if the home isn’t owned outright. 

Homeowners insurance covers damages to the structure and your belongings. Whether the property and your belongings are damaged in a storm, fire, robbery, or other unforeseen events, the insurance covers your losses and the necessary repairs.

Homeowners insurance doesn’t cover renters, so even if you’re renting a room in the home, the homeowner’s policy isn’t cover your belongings. For example, if the home is burglarized and your TV is stolen, it’s not covered under the homeowner’s insurance policy. If you don’t have renters insurance, you’re replacing your TV out of pocket.

What Does Renters Insurance Cover

Renters insurance covers almost everything you find in a homeowner’s policy. Most insurance policies for renters in New Jersey cover property/belongings, liability, and even living expenses if you’re temporarily unable to return home.

Personal Property

Your personal property is your belongings like clothes, books, electronics, etc. Basically, any item you keep in your rented home. If your stuff is damaged in a fire, a leaking or burst water pipe, gas explosion, fire, or even smoke, you can file a claim with your insurance provider. You’re even covered if someone steals your belongings.

However, renters insurance in NJ doesn’t cover every type of damage, and some exceptions include flooding and earthquakes. You also can’t file a claim if your belongings are damaged from daily use. In other words, you can’t file a claim if your TV goes out, but you can seek compensation if someone walks off with your television.

Personal Liability

Personal liability can get a little tricky. Your insurance and that of the property owner may end up arguing over who is covering your liability claim. Even if the property owner has insurance, you may still want to get personal liability coverage.

Personal liability insurance covers you if someone is injured in your home. This only applies to the area you’re renting. If you throw a party and someone falls and injures themselves, your personal liability insurance will protect you from a lawsuit. If the injured party does file a personal injury claim, your insurance will cover their damages.

Depending on your policy, your liability insurance may even cover your attorney fees and court costs. Every policy is different, so it's best to check before you presume you’re fully covered.

Temporary Living Expenses

Hopefully, you never find yourself homeless. However, if a disaster strikes like a fire and your rented home is unlivable, your insurance may cover your temporary living expenses. While you may think this can never happen to you, having this type of coverage is always a good idea. 

You may find yourself living in a hotel room for an extended stay, and this isn’t cheap. Even a roadside motel can run you over $50 per night. Multiply that by several days, and pretty soon, you need a second job to cover your living expenses.

Renters insurance kicks in as soon as you check into the hotel, so along with covering hotel costs, the insurance can also take care of any additional expenses. You may be able to claim your meals and travel expenses. However, your vehicle must be damaged in the event. Your auto insurance may also cover travel costs; it just depends on your policy.

Don’t forget that if a flood or earthquake damages your home, your living expenses aren’t covered.

Consider Adding Extra Coverage

If you’re worried about floods, parts of New Jersey are on the Atlantic coast; you can add flood protection. Even though earthquakes aren’t a concern in the state, you can also tack on coverage for earthquakes.

Something to consider is personal injury coverage. Not everyone has health insurance. Sometimes, personal injury coverage as an add-on is a little more affordable than standard health insurance. Personal injury insurance has limits as the policy only covers injuries that occur in your home.

Renters Insurance Doesn’t Cover Everything

Renters insurance has limitations, and the insurance coverage only covers belongings inside your home. This also applies to personal injury and liability coverage. So if someone slips and falls on the property but not inside your home, your insurance won’t pick up the bill. In this case, the property owner’s insurance kicks in.

The same applies to any personal property you may have in the driveway or yard. You can’t claim damages on your renters' insurance policy.

How to Decide Your Coverage Amount

You have options when you’re deciding how much coverage you need. As you're trying to decide on coverage amounts, think about your budget and your belongings. Even though renters insurance is affordable, prices vary. 

A factor affecting premium amounts is what you have listed on the policy. If you’re listing everything you own, including your socks and an old pair of shoes, your monthly premiums may be higher than average.

Take inventory of your belongings and take note of what’s important, as everyone has a few belongings that they can’t live without. If you’re finding forgotten items during your inventory, they probably don’t need to go on your insurance policy. By listing only the belongings you need and/or cherish, you can keep your renters' insurance policy at an affordable rate.

Protect Yourself and Your Belongings with Renters Insurance

Obtaining renters insurance is a prudent decision, regardless of your living situation, including residing in a dorm room. Unforeseen events like disasters or thefts can occur anywhere, and having renters insurance provides a safety net, protecting your personal belongings. 

It ensures that you’re not left vulnerable and without recourse to recover your losses in the face of such unexpected circumstances.