Do you rent? Learn how to protect yourself here.
Do you rent? Learn how to protect yourself here. Pexels

The New York Times reported that there are 108.5 million renters in the U.S. as millennials continue to drive the demand for rental properties in the new decade. When renting, however, unprecedented mishaps could cause damage to your personal property including your clothing, furniture, and electronic devices.

As we continue to ride the high tide of the pandemic, the financial burden on renters has resulted in countless evictions, as well. Many renters live on a tight budget with diminishing hopes of saving for their retirement or a rainy day fund. In times like these, additional costs due to theft or damages to your personal belongings when renting could make the situation worse.

Fortunately, renters now have the option to get their personal belongings insured starting as low as only $5 a month. An AI-powered fully-licensed insurance provider called Lemonade, the only B Corp certified insurance firm, offers renter's insurance coverage completely online within minutes.

Insurance firms generally profit from premiums that remain after claim payouts. As a public benefit company that showcases accountability for social and environmental causes, Lemonade donates leftover premiums to scores of nonprofits. Lemonade profits from charging a flat fee for operations costs, securing their online ecosystem, and for employees' salaries.

The company is reinsured by some of the world-renowned reinsurance firms like Hannover Re and Swiss Reinsurance Company Ltd. Here's how the renter's insurance works and what kind of coverage you can expect:

Lemonade's Renter's Insurance Policy

These policies were designed to offer holistic coverage to renters.

Personal Property

The base renter's policy covers your furniture, clothing, personal computer, and electronics like TVs or tablets, bikes, and even jewelry (up to $1,500) against thefts, fire incidents, vandalism, and explosions.

Your personal property will even be covered in cases where your phone gets stolen in the subway or your bike gets stolen while parked in your apartment parking space. For a successful claim in cases of theft, make sure to lodge a police complaint at the nearest station and furnish the necessary information like the report numbers, officer's name, and precinct details.

The standard coverage doesn't cover accidental damages to your property, though. You will also have to pay a deductible amount on your claims. If you go for extra coverage, you can get your cameras and even fine art insured with accidental coverage and deductible-free claims in some cases.

Personal Liability Protection

Personal liability protection covers costs incurred as a consequence of any bodily or property damage caused to other people due to your actions. Lemonade will hire a lawyer to represent you in court and pay for any damages on your behalf if anyone claims to be injured or has incurred property damages caused by your negligence.

At the same time, you can claim up to $5,000 in case something happens to guests in your rented property.

Loss of Use

The loss of use terms dictate that your insurer will cover hotel bills, temporary storage of belongings, laundry, parking, and moving costs if your place becomes unlivable due to a fire, windstorm, or government intervention where you are asked to leave the vicinity due to a natural calamity, like the California wildfires.

Things to Note When Purchasing Renter's Insurance

Your credit score, coverage and deductible amount, locality, history of insurance claims, and security features like smoke or burglar alarms collectively affect the premium you pay every month. Lemonade's insurance won't cover your roommate but will cover your significant other so don't forget to add their name when you apply for the policy.

You will also have the option to pay premiums every month or every year. Depending on the state that you live in, this may come with helpful discounts. Just initiate a claim on the intuitive app, complete the report, and enter your bank information to receive the money after claim approval.

It helps to have receipts of your purchases, as well. In case you don't, though, try to remember the store you bought them from in order to process claims faster.

Get a renter's insurance policy quote in seconds on Lemonade.

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