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Renters Insurance vs. Pet Insurance: What’s Covered and What’s Not
By Kat Tretina MONEY RESEARCH COLLECTIVE
Pet insurance and renters insurance are very different products, and some people may need both forms of coverage.
If you rent your home and have a pet, you may need two types of insurance to protect your household: one for your belongings, and another for your pet.
Renters insurance offers many of the same protections as homeowners insurance, without covering the building itself. It provides liability protection if your pet injures someone or damages a neighbor’s property. Pet insurance, meanwhile, helps pay for unexpected veterinary care if your pet gets sick or injured.
The two policies are often discussed together, but they protect against different risks. Here’s what each covers and when you may need both.
What does renters insurance cover?
Renters insurance, also known as tenant coverage or apartment insurance, protects you and your personal belongings inside your rental unit. A standard renters insurance policy typically includes two forms of coverage:
- Personal property coverage: You come home one night and notice that thieves broke into your apartment and stole your laptop and jewelry. Or, a fire damaged your clothing and furniture. Personal property insurance helps pay to replace the lost or damaged items.
- Personal liability coverage: A guest falls in your home and breaks their arm. Or your pet is startled and bites a visitor. A personal liability policy pays for their medical expenses and your legal costs resulting from liability claims. It can also cover damages your pet causes to a neighbor’s property. If your pet destroys your neighbor’s lawn furniture, for example, renters insurance can help.
Renters insurance and pets
When it comes to your pets, renters insurance only provides liability coverage if your pet damages your neighbor’s property or injures someone. However, renters insurance doesn’t cover your pet’s health or veterinary bills. Additionally, renters insurance providers typically exclude breeds they deem high risk, including pit bulls, Dobermans and Rottweilers and exotic pets like reptiles, birds and ferrets. Insurers may also exclude your pet if it has a known bite history, regardless of breed.
How much does renters insurance cost?
On average, renters insurance costs about $23 a month, though you may pay more if you live in an area with a higher likelihood of storms, fires or theft.
According to the National Association of Insurance Commissioners, Mississippi, Louisiana and Alabama have the highest renters insurance premiums while the lowest are in North Dakota, South Dakota and Minnesota.
What does pet insurance cover?
Pet insurance is a specialized form of coverage that helps make the cost of emergency veterinary bills more affordable.
If your dog is hit by a car or if your cat eats something they shouldn’t, pet coverage will reimburse you for eligible veterinary expenses like hospitalization, lab tests, X-rays, surgery and medications. A policy also covers treatments for chronic or congenital health issues, as long as they weren’t 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. A single emergency can push that number even higher.
Let’s say your veterinarian diagnoses your dog with hip osteoarthritis and recommends a total hip replacement. On average, this procedure costs about $7,000, according to a publication from the American Veterinary Medical Association. If you have a pet insurance policy with a $500 deductible and an 80% reimbursement percentage, here’s how your policy would help with the cost:
You pay the bill upfront, then file a claim with your insurer. Pet insurance will reimburse you 80% of the $7,000 bill, or $5,600, minus the policy’s $500 deductible (which you pay out of your own pocket). All told, your insurance policy would reimburse you $5,100 of the cost.
How much does pet insurance cost?
An accident and illness plan costs $36 a month for a cat and almost $70 for a dog, according to the North American Pet Insurance Association (NAPHIA).
Accident-only plans are significantly cheaper, with monthly averages of $9 cats and $15 for dogs.
What doesn’t pet insurance cover?
Pet health insurance only covers sudden illnesses or injuries your pet develops; it doesn’t provide any coverage for pet-related incidents, damages, or injuries your pet causes to other people or their property. Some companies offer add-ons for pet liability coverage, but these are the exception, not the norm.
Do I need renters insurance, pet insurance or both?
Renters insurance and pet insurance can complement one another. If you rent a home and have a pet, you may benefit from having both forms of insurance. The table below shows examples of what events are covered under each type:
Who should get renters insurance?
Renters insurance can be a worthwhile investment in the following scenarios:
- Your landlord requires it for their rental properties
- You own pricey electronics or collectibles that would be difficult to replace
- You have a pet that could be a liability risk, such as a large dog
- You want peace of mind in case of accidents involving guests
Who should get pet insurance?
Pet insurance makes sense if you meet any of the following criteria:
- You’d have trouble paying for an unexpected emergency veterinary bill
- Your pet is a breed prone to health issues
- You want to reduce the financial stress of unexpected vet expenses
Never forget: they’re family, too. Make sure they’re protected!
Kat Tretina is a personal finance writer and certified student loan counselor based in Orlando, Florida. Dedicated to helping people build a solid financial foundation, she has written about debt repayment, investing, and insurance—including pet, life and car insurance —for major publications. Her work has been published by The Huffington Post, Business Insider, Credit Karma, and more.