DO I NEED RENTERS INSURANCE?

As a resident you most likely own furniture, appliances, a wardrobe and other valuable personal belongings.  Many residents (tenants) assume that these personal belonging are insured against loss or damage by their landlords insurance policy. This is NOT the case.

Typically a landlords dwelling policy will contain protective provisions for the building structure itself and is payable to the landlord in the event of structural damage to the building..  Nor does a Landlord’s insurance policy cover your liability to others who suffer “damage” or injury should you be found negligent in an ensuing lawsuit, having in some way contributed to the “damage“.  Without renters insurance, losses incurred for your personal belongings or to those you may be required to pay in damages, are not covered.

WHAT DOES RENTERS INSURANCE COVER?

Renters Insurance is a combined or “packaged” policy for both your personal property and your liability to others. The good news is your personal property is covered whether it is located within your apartment/home or elsewhere.

The standard renter’s policy covers furniture, clothing, and most other personal property/belongings for their actual cash value at the time of loss, but provides only limited coverage for jewelry, furs, and other specific valuables. A special addition to your renter's insurance policy or a separate polity altogether can be made, to further protect your investment in such valuables.

Most renter’s insurance policies insure your household contents and personal property from:

Fire or Smoke

Windstorm, Lightening or hail

Theft

Vandalism and malicious mischief

Riot or civil commotion

Aircraft

Vehicles

Falling Objects

Weight of snow, sleet, ice
Water or steam damage resulting from plumbing, heating or air conditioning systems.

Sudden and accidental injury from artificially generated currents to electrical appliances, devices, fixtures and wiring

The liability coverage in a Renter’s insurance policy applies to at home or elsewhere*,

to injuries or damages caused by you**,  a member of your family, or even a pet. It includes the legal costs of defending you if sued.

(*Does not apply to liability resulting from the use of an automobile, which must be covered separately with an automobile insurance policy.)

(** renter’s insurance coverage will not apply to your intentional acts causing damage.) 

Damage to the actual building is not covered under a renter’s insurance policy.

Your renter’s insurance policy coverage will also pay for any increase in living expenses made necessary when your residence cannot be occupied due to damage caused by any of the circumstances listed above.  As an example; If you are displaced from your home due to a damaging fire, and have to live in a hotel and eat in restaurants while repairs are ongoing, your insurance company will reimburse you, up to the limits specified in your policy, for the difference between these expenses and your normal living expenses.

RENTER’S INSURANCE COST

Renter’s insurance is relatively inexpensive especially when compared to the protection provided in the event of personal loss. It is a chance you cannot afford to take and many insurance companies will accept payment installments.

“But I am exceptionally careful and have never had a problem, why start now?”

Keep in mind especially when living in an apartment complex with multiple tenants, that the problem causing your loss may originate elsewhere in another unit or by a room mate under shared living circumstances.