NASHVILLE – With a new school year underway, Tennessee college students are moving into rental apartments and houses — some for the first time. To help renters of all ages and backgrounds, the Tennessee Department of Commerce & Insurance (TDCI) is sharing information about the importance of renters insurance and being aware of their rights as renters.
“Tennessee has renters across a broad spectrum – from college students to recent graduates and young professionals all the way to seniors who are looking to downsize,” said TDCI Commissioner Carter Lawrence. “Renters insurance is an important tool that can help protect your belongings when you rent a house or apartment. Contact your licensed Tennessee insurance professional to learn more.”
To help renters, TDCI compiled a list of important tips to remember before purchasing a renter insurance policy.
What Renters Insurance Covers – and What It Doesn’t
- Renters insurance policies protect personal possessions in the event of an emergency. These policies are usually inexpensive and can even cover living expenses if your rental is deemed uninhabitable due to storm damage or another covered loss.
- Never assume your landlord’s insurance policy covers your possessions. More often than not, you will have to acquire renters insurance to protect your belongings.
- As with most homeowners policies, a renters insurance policy generally does not cover damages to a structure or your possessions in the event of a flood. Consider a flood insurance policy to cover flood damage.
- Renters insurance might pay for a visitor’s medical bills if you’re found responsible for their injuries.
- Many policies cover your belongings outside of your home. For example, if someone steals items you own from your car or a hotel room, your policy will provide coverage.
- If you are a college student and you live in on-campus housing and are under age 26, your belongings may be covered under your parents’ homeowners or renters’ insurance policy. However, even if your belongings are covered under your parents’ insurance policy, it may only pay up to a specified amount. Check with your agent or insurance company to find out a policy’s coverage limits and exclusions.
Buying A Policy
- When deciding whether to buy a policy, consider how much your items are worth and what they would cost to replace. Are you willing to pay out of pocket?
- The cost of renters insurance depends on the coverage you select. The premiums for renters insurance average between $15 and $30 per month depending on the location and size of the rental unit and the policyholder’s possessions.
- Be sure to shop around. Replacing even a small number of items could cost thousands of dollars, and a basic policy can cover these costs.
- Many insurance companies offer discounts if you have fire or burglar alarms, fire extinguishers, sprinkler systems, or deadbolts on exterior doors.
- You may also get a discount if you have more than one policy with an insurance company or had no claims on your previous policy.
- Be sure to ask your agent or insurance company about the discounts they offer.
What Are the Policy Options for Renters Insurance?
Most policies typically provide three types of coverage: personal property, liability, and additional living expenses.
- Personal property coverage helps pay to repair or replace personal belongings if they are damaged, destroyed, or stolen.
- Liability insurance can help protect you if a guest is injured while in your home or apartment. Renters insurance policies have liability limits, which are the highest dollar amount the policies cover. Policies also typically include a deductible, which is the amount you must pay if a loss happens.
- Additional Living Expenses will help pay expenses you incur because you can’t live in your rental. The insurance company will not pay all your living expenses. It will only pay the difference between your previous living expenses and your new temporary expenses.
Actual Cash Value Vs. Replacement Cost Value
You might also have to choose between actual cash value and replacement cost value when you purchase your policy.
- Actual cash value only pays you the current value of an item. Your personal belongings lose value over time due to things like age and wear and tear. For example, your computer might have cost $2,000, but it is five years old. The value of the computer may currently be $500, which is the amount the insurance company would pay if you had actual cash value coverage.
- Replacement cost value coverage would reimburse you for a new computer that is similar to the computer that was destroyed.
Unfairly Denied an Insurance Claim?
If your family experiences a claim denial, claim delay, or settlement disagreement, file a complaint at tn.gov/insurance, under “File A Complaint.” TDCI’s Consumer Insurance Services team serves to mediate claims between policyholders and insurers. In 2025, over $15.67 million was returned to Tennesseans through these efforts. Call 615-741-2218 for insurance questions or more information.
