If you rent your home and have a pet, you may need two types of insurance to protect your home: one for your possessions, one for your pet.
Renters insurance offers many of the same protections as homeowners insurance, except it covers the building itself. It provides liability protection if your pet injures someone or damages a neighbor’s property. Pet insurance, on the other hand, helps cover unexpected veterinary care if your pet gets sick or injured.
These two policies are often discussed together, but they protect against different risks. Here’s what each covers and when you might need both.
What does renters insurance cover?
Renters insurance, also known as renters insurance or apartment insurance, protects you and your personal belongings inside your rental unit. Standard renters insurance usually includes two types of coverage:
- Personal property: You come home one night and realize that thieves have broken into your apartment and stolen your laptop and jewelry. Or, the fire destroyed your clothes and furniture. Personal property insurance helps pay for lost or damaged items.
- Inclusion of personal liability: A guest falls into your house and breaks his arm. Or your pet is scared and bites a guest. A personal liability policy covers their medical expenses and your legal expenses resulting from liability claims. It may also cover damage caused by your pet to a neighbor’s property. If your pet destroys your neighbor’s furniture, for example, renters insurance can help.
Renters and pets insurance
When it comes to your pets, renters insurance only provides coverage if your pet damages your neighbor’s property or injures someone else. However, renters insurance does not cover your pet’s health or pet bills. Additionally, rental insurance providers typically do not cover breeds they consider to be at high risk, including pit bulls, Dobermans and Rottweilers and exotic pets such as reptiles, birds and ferrets. Insurers may also exclude your pet if it has a known history of bites, regardless of breed.
How much does renters insurance cost?
On average, renters insurance costs about $23 a month, although you may pay more if you live in an area prone to hurricanes, fires or theft.
According to the National Association of Insurance Commissioners, Mississippi, Louisiana and Alabama have the highest renters insurance premiums while North Dakota, South Dakota and Minnesota have the lowest.
What does pet insurance cover?
Pet insurance is a special type of protection that helps make the cost of emergency vet bills more affordable.
If your dog gets hit by a car or if your cat eats something it shouldn’t, pet coverage will reimburse you for reasonable veterinary medical expenses such as hospitalization, lab tests, X-rays, surgeries and medications. The policy also covers treatment for chronic or congenital health problems, provided they are not pre-existing conditions.
Pet ownership isn’t cheap: Pet owners now spend an average of $4,272 a year on routine care alone, according to a new study by Money.com and Healthy Paws Pet Insurance. One emergency could push that number even higher.
Let’s say your veterinarian diagnoses your dog with hip osteoarthritis and recommends a total hip replacement. On average, the procedure costs about $7,000, according to a letter from the American Veterinary Medical Association. If you have pet insurance with a $500 deductible and an 80% reimbursement percentage, here’s how your policy can help with costs:
You pay the bill upfront, then file a claim with your insurance. Pet insurance will reimburse you 80% of the $7,000 liability, or $5,600, minus the $500 deductible (which you pay out of pocket). In total, your insurance will reimburse you $5,100 in costs.
How much does pet insurance cost?
An accident and illness plan costs $36 a month for a cat and about $70 for a dog, according to the North American Pet Insurance Association (NAPHIA).
Accident-only plans are the cheapest, with monthly rates of $9 for cats and $15 for dogs.
What this is not the case pet insurance cover?
Pet health insurance only covers your pet’s sudden illness or injury; does not provide any coverage for pet-related incidents, damage, or injury caused by your pet to other people or their property. Some companies offer add-ons for pet credit coverage, but this is the exception, not the norm.
Do I need renters insurance, pet insurance or both?
Renters insurance and pet insurance can complement each other. If you rent a home and have a pet, you may benefit from having both types of insurance. The table below shows examples of what happens under each type:
|
Renters insurance |
Pet insurance |
|
|---|---|---|
|
Your cat has an eye disease |
✗ |
✔ |
|
Your cat was bitten by the neighbor’s dog |
✗ |
✔ |
|
Your dog has broken a bone |
✗ |
✔ |
|
Your dog destroys your neighbor’s garden |
✔ |
✗ |
|
Your dog runs into your neighbor, causing injury |
✔ |
✗ |
Who should get renters insurance?
Renters insurance can be a worthwhile investment in the following situations:
- The landlord needs you in his rental properties
- You own expensive or collectible electronics that can be difficult to replace
- You have a pet that can be a credit risk, such as a large dog
- You want peace of mind in the event of accidents involving visitors
Who should get pet insurance?
Pet insurance makes sense if you meet any of the following criteria:
- You will have trouble paying for an unexpected emergency vet bill
- Your pet is a breed prone to health problems
- You want to reduce the financial stress of unexpected vet expenses
Frequently Asked Questions
Does renters insurance cover pet bills?
No, renters insurance does not cover pet bills; renters insurance only covers your personal property and personal liability.
What happens if my pet damages my house?
Renters insurance covers damage to your pet’s cause on someone else’s property, not damage to your pet’s cause on your property. If your dog chews the baseboards or your cat’s claw scratches the floor, renter’s insurance doesn’t apply. Instead, the landlord may deduct the repair costs from your security deposit.
Is renters insurance required if I have a pet?
Renters insurance is not a legal requirement in any situation, but some landlords will need it, especially if you own certain types of dogs.
Does pet insurance cover dog bites?
No, pet insurance does not cover injury or damage if your dog bites another person or dog. But if your pet is injured or bitten, and the bite is not caused by an organized fight or safety activity, pet insurance will cover their veterinary expenses.
