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 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. Despite this, she’s never heard of renters insurance.

“What is renters insurance?” she asks. Are you prepared to answer?

What is renters insurance?

Renters insurance is quite easy to explain.

It’s a line of insurance coverage that will protect a person—and her belongings —when she rents the dwelling where she lives. It doesn’t matter if she lives in a studio apartment or a four-bedroom home. As long as she doesn’t fully own her place, she can purchase a renters insurance policy.

What are the basics it covers?

Often, people don’t consider buying renters insurance because they assume their landlord’s home insurance will cover them if something happens. But the landlord's home insurance policy will only cover repairs to the actual property. It will not cover costs to replace any of the renter's personal items.

The most basic explanation you can give your new client is that if she adds renters insurance, her belongings will also be covered if something happens to them. However, just like any insurance, 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 paining, 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

All these are 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, her 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 your items before anything happens. You can make a video of your items, manually write it down, or keep a list of your belongings on an app. Most insurance companies have values for multiple products already listed in a database. But if you're paranoid about certain items not being covered, it doesn't hurt to document them.

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 will usually not cover a flooded dwelling; but water damage–possibly caused by a broken pipe or leaky roof—will be covered under a policy. Similarly, some areas do not cover some of the natural disasters mentioned above, like hurricanes or snowstorms.

There are also limits to what a policy will cover. Jewelry, for example, is usually only covered up to $1,000. Other high-value property, such as coin or stamp collections, have limits as well. However, riders are usually sold in addition to the renters policy to cover these types of belongings.

Practical ways to save on renters policies

There are multiple ways you can purchase a renters insurance policy without feeling like you’ve emptied your wallet. Here are a few steps that can help you save money on renters insurance:

Comparing rates

Shopping around for different rates from multiple insurance companies can help you decide which policy is most financially practical in the long run.

Purchasing an umbrella policy

Although an umbrella policy generally costs a bit more, it also works in your favor to save you money 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 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 and to anyone.  Especially in places prone to natural disasters, hurricanes, blizzards, and wildfires can cause severe damage in a matter of minutes.

Now that you know what renters insurance is, 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.

Have you ever been asked, “what is renters insurance?” by one of your clients? What was your answer? Let us know in the comments section.