WHY RENTERS
INSURANCE
IS A GOOD IDEA
Ask about deductibles.
A deductible is the amount you agree to be
responsible for in the event of damage to
your personal property (e.g., wind, hail,
accident, re, or vandalism) before the
insurer makes any payments. If you select
a high deductible, you pay more out-of-
pocket for any damage; however, your
premium should be lower.
Do not buy an insurance policy
based solely on its price.
Consider the coverages, the limits, and
the service. You may want to ask friends
and neighbors about their experiences
with their insurer(s). Select an insurer
and/or insurance producer you feel you
can trust and are comfortable dealing
with.
Protect yourself from
insurance fraud.
It is illegal for unauthorized insurers and
insurance producers to sell insurance in
Maryland. Once you have selected an
insurer, contact the Maryland Insurance
Administration (MIA) to verify that the
insurance producer and/or insurer is
authorized to sell insurance in Maryland.
You can get this information on the MIA’s
website, www.insurance.maryland.gov, or
by calling us at 800-492-6116.
directly to their members. You can
also refer to our brochure, Homeowners
Insurance: A Comparison Guide to Rates,
to get an idea of costs. is brochure is
available on our website at www.insurance.
maryland.gov or by calling us at 800-492-
6116 to request a copy.
Ask for price quotes.
When you call an insurance producer or
insurer, typically, you will be asked about
the type of construction and design of your
residence, the distance to the nearest re
department and hydrant, the use of security
devices, and the types of coverages you
want as well as the dollar limits for those
coverages. Make sure the information you
provide is accurate and that you provide the
same information to each insurance producer
or insurer that you call. Also, keep in mind
that one insurance group often includes
many insurers (not just the ones listed in our
guide), and the rates and/or underwriting
requirements may be dierent for each
insurer within the group. Ask the insurance
producer about other insurers in the group.
Ask for discounts.
To help keep your premium down, ask
what discounts the insurer oers. For
example, premium reductions may be
granted if you buy your renters and auto
insurance from the same insurer, or if
you install a security system and smoke
detectors. Some insurers oer discounts
to senior citizens, members of groups or
associations, and nonsmokers.
MIA-HO-5 (2-21)
T
his consumer guide should be used for educational purposes
only. It is not intended to provide legal advice or opinions
regarding coverage under a specific insurance policy or
contract; nor should it be construed as an endorsement of
any product, service, person, or organization mentioned in
this guide. Please note that policy terms vary based on the
particular insurer and you should contact your insurer or
insurance producer (agent or broker) for more information.
This publication has been produced by the
Maryland Insurance Administration (MIA) to provide
consumers with general information about insurance-related
issues and/or state programs and services. This publication
may contain copyrighted material which was used with
permission of the copyright owner. Publication herein does
not authorize any use or appropriation of such copyrighted
material without consent of the owner.
All publications issued by the MIA are available free of charge
on the MIA’s website or by request. The publication may be
reproduced in its entirety without further permission of the
MIA provided the text and format are not altered or
amended in any way, and no fee is assessed for the
publication or duplication thereof. The MIA’s name and
contact information must remain clearly visible, and no other
name, including that of the insurer or insurance producer
reproducing the publication, may appear anywhere in the
reproduction. Partial reproductions are not permitted without
the prior written consent of the MIA.
Persons with disabilities may request this
document in an alternative format. Requests
should be submitted in writing to the Chief,
Communications and Public Engagement at the address
listed below.
200 St. Paul Place, Suite 2700
Baltimore, MD 21202
410-468-2000 • 800-492-6116
800-735-2258 TTY
www.insurance.maryland.gov
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INSURANCE ADMINISTRATION
INSURANCE ADMINISTRATION
Why Renters Insurance
Is A Good Idea:
If you rent, your personal belongings
will not be protected against loss or
damage unless you have a renters
insurance policy. Your landlord has
insurance for structural damage to
the building, and might even be
protected against damage caused by
tenants. However, this coverage does
not extend to your personal property,
nor does it protect you from being
liable for damage you might cause
to the building inadvertently (e.g., a
kitchen fire or a plumbing mishap)
or to others who are injured at your
property (e.g., a trip and fall over
toys or furniture).
Renters insurance policies can cover
everything from electronics to clothing
to household appliances. Even a
minimal number of items could add
up to thousands of dollars’ worth of
merchandise, which can all be covered in
a basic policy. It can also provide you with
liability insurance, defense and indemnity
payments if necessary, in the event
someone sues you for injury to others or
property damage to property of others.
What does a renters insurance
policy typically cover?
is type of policy:
• covers loss or damage to household
contents or personal possessions;
• provides for additional living expenses
in the event of a covered loss that makes
your home, apartment or condominium
uninhabitable;
• provides you with liability coverage for
injuries to others and/or their property
while they are on your property; and
• includes medical payments to others.
Many policies do not limit protection to
your belongings located in your home or
apartment. For example, items you have
insured often are covered if they are stolen
by someone who breaks into your car or
if they are damaged while not on your
property.
Before you purchase the policy
make sure you understand what
it covers and what it excludes.
Some policies cover only one type of peril
(for example re or wind). at means
that if your damage is caused by something
other than that peril, you will not have
coverage. For example, if you have a re
only policy and you have wind damage,
your loss will not be covered. A policy that
only covers limited perils generally will cost
less than one that covers all perils. Also, in
some instances a policy may only cover the
damage to the landlord’s structure.
Your property management company or
landlord may require that you purchase
a Property Damage Liability Waiver
(PDLW), or include a fee for a PDLW as
part of your rent. It is important to know
that a PDLW is not renters insurance
and typically will not cover any of your
belongings. A PDLW generally only covers
damage to the building, and may only
apply to certain types of events, such as
re, smoke, explosions, or leaking water.
How much coverage do I need?
is depends on the value of your
personal property. You should start by
making an inventory of your personal
property and determine the value of that
property. You also need to consider how
much liability coverage you want to cover
injuries or damage to other people or
their property. Your insurer or insurance
producer (agent or broker) can assist you
with making this decision.
is inventory, along with photos and
proof of ownership, will make it easier to
le an accurate, detailed insurance claim
in case your personal property is damaged
or destroyed by a covered cause of loss
under your policy.
How much does renters
insurance cost?
e actual cost depends upon the amount
of coverage you want, the type of coverage
(replacement value or actual cash value),
and the deductible you select. e average
renters insurance policy costs between $15
and $30 per month. Replacing all of your
possessions or being liable for an accident
on your premises will cost much more.
Additionally, many insurers will reduce
your premiums if you have re or burglar
alarms, re extinguishers, sprinkler systems
and/or deadbolts on exterior doors. Some
insurers might also oer discounts if you
have more than one policy with them.
You can refer to our brochure, Homeowners
Insurance: A Comparison Guide to Rates
to get an idea of cost. is brochure is
available on our website, www.insurance.
maryland.gov or by calling us at 800-492-
6116 to request a copy.
Comparison shop.
Make certain you provide the same
information to each insurer or insurance
producer, and that you compare policies
that oer the same types of coverages with
the same deductibles and coverage limits.
is way you will be comparing “apples to
apples” and will be able to tell how much
money, if any, you are actually saving. You
may want to contact several insurers or
insurance producers; as well as ask your
friends and relatives for recommendations.
In addition, some banks, employers, and
special interest groups oer insurance
