Picture this scenario: You’re talking to a new lead about purchasing car insurance, and she’s about to commit — her only concern is the cost. She asks you for ways she can get a better deal without decreasing the amount of coverage.

Here is the perfect opportunity to cross-sell this customer by suggesting she add an extra line of insurance. After all, a bundled deal may save her money in the long run. After talking to her, you find out she is renting an apartment, though, despite this, she’s never heard of renters’ insurance. “What’s that?” she asks. Are you prepared to answer?

What is Renters’ Insurance?

Renters’ insurance is a line of coverage that will protect a person who rents their dwelling — and their belongings — should something detrimental happen to the property. It doesn’t matter if said renter lives in a studio apartment or a four-bedroom home; As long as they don’t fully own the place, they can purchase a renters’ insurance policy.

Overview of Coverage

People often don’t consider buying renters’ insurance because they assume their landlord’s home insurance will cover them if something happens. In reality, the landlord’s home insurance policy will only cover repairs to the actual property, not costs needed to replace any of the renter’s personal items. Just like any insurance, however, the specifics differ depending on what type of plan she buys.

What Renters’ Insurance Protects Against


Renters’ insurance can cover the cost of replacing items that have been stolen. This isn’t limited to the theft of items inside an apartment or house. If goods are stolen while the renter is traveling on vacation, an insurance policy can cover the cost of their belongings.


If items are ruined by an act of vandalism, such as spray painting, a renters insurance policy may pay to have them fixed or replaced.


Renters’ insurance covers damages caused by:

  • Fire
  • Lightning
  • Electrical surges
  • Snowfall
  • Some types of water damage

These are all unexpected occurrences that can cost renters a lot of money if they don’t have insurance.


If someone gets hurt under the roof of your insured client, the renter’s policy can cover medical expenses. It can also cover fees incurred in a lawsuit.

Living expenses

Renters’ insurance will cover the cost of finding replacement housing. This might be needed when a dwelling is unlivable or is undergoing repairs after being damaged.

A helpful way to make sure that any personal property will be covered is to document items before anything happens. You can either make a video of the insured belongings, manually write them down, or keep a list on an app.

What Renters’ Insurance Doesn’t Cover

It’s important to never oversell a renters’ insurance policy. When someone asks, “what is renters’ insurance?” inform them of the policy’s limitations. There are some specifics your prospects should know about before committing.

For example, renters’ insurance usually does not cover a flooded dwelling, but water damage — possibly caused by a broken pipe or leaky roof — can be covered under a policy. Similarly, policies in some areas may not cover some of the natural disasters mentioned above, like hurricanes or snowstorms.

There are additional limits to what a policy will cover. Jewelry, for example, is usually only covered up to $1,000. Other high-value property, such as a coin or stamp collection, may have limits as well. Riders, however, are usually sold in addition to the renter’s policy to cover these types of belongings.

Practical Ways to Save on Renters’ Policies

One way to save money on a renters’ insurance policy is to purchase an umbrella policy. Although an umbrella policy generally costs more up front, it works in your favor to save you money in the long run, relative to the coverage provided. Protecting against risks from lawsuits to personal injury or property losses can be a relatively affordable way to extend renters insurance coverage.

Two Common Renters’ Insurance Objections

Renters often assume that they have nothing valuable worth insuring. If this is something you hear when discussing renters’ insurance with your prospects, remind them that all of their “small” belongings can add up quickly. An average living room contains a:

  • Couch
  • Loveseat
  • Coffee tables
  • Lamps
  • Television
  • TV stand
  • DVD player
  • Wall decorations

The costs to replace these items is easily at least a couple hundred to thousand dollars.

Often, renters have the “it-won’t-happen-to-me” mentality. They don’t want to buy renters insurance because they haven’t had any issues in the past. They assume their luck will continue in the future. Even so, disaster can strike at any time, especially in places prone to natural disasters like hurricanes, blizzards, and wildfires, which can cause severe damage in a matter of minutes.

Now that you’re feeling confident in explaining renters’ insurance to a shopper, it’s time to find new prospects and sell it! If you’re looking for high-quality leads, join QuoteWizard today. We can help you find renters who are already searching for new insurance policies.