Renters Insurance: Everything You Need to Know

by | i-Stories, Property Trend, Rental Trend

Many renters are familiar with homeowners insurance, but renters insurance is much less common. There are many renters who have heard about renters insurance but do not fully understand why it is necessary.

That’s because they assume their landlord has insurance covering the property. However, for most tenants, renters insurance is an invaluable tool to protect their personal property against potentially devastating financial consequences.

Here is everything you need to know about renters insurance—what it is, what it does and doesn’t cover, and more.

What Is Renters Insurance?

What Is Renters Insurance

Renters insurance is a type of property insurance that covers damages to a renter’s personal belongings from damages like fire and smoke, vandalism or theft and protects the insured from liability claims.

This includes injuries occurring in your rental that aren’t due to a structural problem. Injuries due to structural problems are your landlord’s responsibility.

It’s important to know that renters insurance is different from home and landlord insurance. They are intended for property owners and will not provide the specific coverage a renter needs.

Even if you’re a new renter or have lived in a place for a year, investing in a renters insurance policy is a smart investment. It could also probably be the least expensive and easiest-to-obtain insurance you’ll ever own.

You may think it’s unnecessary, but getting one means you can comfortably afford to replace your damaged belongings in the event of a theft or a fire.

What Renters Insurance Covers

What Renters Insurance Covers

Renters insurance comprises three basic components: personal possessions, liability, and additional living expenses.

1. Personal Possessions

Typical uncontrollable hazards a person could encounter in their rental home include fire, theft, vandalism, plumbing and electrical malfunctions, unavoidable weather-related damage, and other hazards. 

That is why renters insurance is necessary. It protects your personal belongings in your rented home, including material goods such as clothing, jewellery, household goods and more.

It is also for renters to cover losses to their personal property from events such as explosions, riots, vandalism etc. Floods and earthquakes, however, require separate insurance policies.

2. Liability

Not many expect to be the target of a lawsuit, but if it ever happens to you, it could be very costly. Between damages and legal fees, you could end up in debt.

It’s best to have renters insurance if you want to avoid paying that much money out of your own pocket. The liability coverage may pay for legal costs in the event that a renter gets sued for causing harm to others through an accident like dog bites or negligence.

READ MORE: Partially Furnished vs. Unfurnished: Basic House Furniture Checklist for Tenants

3. Additional Living Expenses

This coverage means that if you have to leave your home due to unforeseen circumstances, you will be provided with some money to pay for temporary housing.

Hotel bills, restaurant meals, temporary rentals, and other expenses incurred while your home is undergoing construction are all included.

What Isn’t Covered By Renters Insurance?

What Isn't Covered By Renters Insurance

Every insurance policy has exclusions, including renters insurance. Here are a few situations renters insurance will not pay for:

1. Flood damage

Renters insurance will not cover damage from flooding. If your home is at risk, you will have to pay for the repairs yourself or purchase a separate flood insurance.

2. Earthquake damage

Similar to flood damage, earthquakes will also not be covered by your renters insurance. Buying a separate earthquake insurance policy is the only way to protect yourself from the financial costs of damage from an earthquake.

READ MORE: Property Valuation: Factors that Influence a Home’s Value

3. Your Housemate’s Belongings

Renters insurance will not cover your housemate’s belongings unless the two of you share a policy. In most cases, however, it’s best if you each get your own renters insurance, even if you want to share one to cut costs.

Do I Need Renters Insurance?

You can never be too prepared for an emergency. That is why it’s a good idea to have renters insurance if you are renting a property.

However, there may be some instances where it isn’t necessary. If you are living in a studio apartment with only a bed and television, it might not be worth the cost and trouble.

Therefore, before getting a renters insurance, take a personal inventory of your rental property to see how much value there is.

Renting with Rumah-i

Rumah-i is a prominent rental services company in Malaysia dedicated to helping you find your dream home. Our customers enjoy a comfortable living experience with stylish apartments, smart property management and insurance coverage.

You can begin your search with our Home Renting App, available on Google Play and the App Store. If you are a landlord looking for tenants for your properties, download the app now and start listing for free!


- Entitle ONE time rental collection service for free

- Rental collection service for free is limited to FIRST 1,000 properties which engage the service and is for pre-launch registered owners only.

- Tenancy agreement must be prepared by Rumah-i.