Renters insurance's primary purpose is to insure you against the loss of your personal belongings. If they're stolen or damaged in a disaster or accident, your insurer will provide funds to replace them (minus the deductible). Certain damage may not be covered; renters policies usually don't cover losses from earthquake or flood damage, for example.
You may think you don't own much expensive stuff—a smartphone, a TV, maybe a nice computer. But replacing less flashy items adds up quick: Imagine the price of replacing your entire wardrobe if it were lost in a fire.
Many renters policies offer the option to cover the full replacement cost of your items. That means you can cover the non-depreciated cost (i.e. the price you paid when you bought it new) of expensive items like cameras, televisions, computers, sound systems, and so on, rather than what they were worth when they were stolen or destroyed.
If, for example, your 5-year-old laptop was $1,500 when you bought it new but only worth $500 when it was stolen, it's insured at $1,500. Note that most policies have a cap on coverage for categories like electronics, so make sure yours has a high enough limit.
Speaking of fires and plumbing disasters, what happens if you're responsible for one? Without renters insurance, you could be sued or held liable for damages if a fire is your fault, or a leak in your unit floods a neighboring unit. A renters policy generally includes personal liability protection for these instances, which is why many landlords require tenants to carry a renters policy.
It could also protect you if a friend gets hurt in your home—you've got a much better chance at remaining friends if their medical care is paid for by your insurance rather than your checking account.
Renters insurance policies typically cover a total amount of personal property (say, $25,000) but may include lower limits by category (up to $2,000 of jewelry, up to $5,000 of electronics, for example).
If you have especially pricey items, such as an expensive engagement ring, vintage collectibles, or high-end electronics, most insurers allow you to add supplementary renters coverage for their full replacement cost.
Does renters insurance sound like a good fit for you? Get a quote through AAA online to see how affordable protecting yourself and your belongings could be. Plus, if you already have auto insurance through AAA, you can bundle to save with an insurance discount on both policies.
Separate purchase of AAA membership is generally required to obtain and renew AAA insurance.
AAA insurance is a collection of AAA branded products, services and programs available (where authorized) to qualified AAA members. AAA personal lines insurance is provided by Interinsurance Exchange of the Automobile Club in CA, HI, NM, ME, NH, PA, VA and VT; by Automobile Club Inter-Insurance Exchange (ACIIE) and Auto Club Family Insurance Company in AL, AR, IL, IN, KS, LA, MS and MO; by Auto Club County Mutual Insurance Company and Auto Club Indemnity Company in TX; by Auto Club Property Casualty Insurance Company in KY and WV; and by MemberSelect Insurance Company in OH. Insurance may also be provided by independent carriers. Life insurance is underwritten by AAA Life Insurance Company, Livonia, MI. AAA Life is licensed in all states, except NY. The Motor Club or its affiliates act as an authorized agent for insurers they sell insurance on behalf of, including AAA Life and AAA affiliate insurers. Personal lines insurance may not be available in every state or throughout a state. Please consult your local AAA agent.
Renters coverage is not available in Louisiana (LA). Auto insurance in LA is offered by ACIIE. Insurance coverage is not available in NY.