Don’t think you own anything worth insuring? Think again.
Renters insurance can be a lifesaver.
One of the best things about renting (vs. owning) is not being on the hook for those expensive home repairs, such as roof replacements, plumbing issues, and leaky water heaters. But don’t let that lull you into a false sense of security.
You may not own your dwelling, but you do own plenty of things: your television, clothes, jewelry, laptop, just to name a few. And no, your landlord’s policy doesn’t cover these items.
That’s where renters insurance comes in.
What Is Renters Insurance?
Renters insurance (also called tenants insurance) primarily protects your personal belongings in the case of unexpected loss or damage.
This is different from the policy held by your landlord or property management company. Their policy covers what they own: the dwelling itself and (often) some major appliances. To be reimbursed for damage done to your property, you need renters insurance.
There are three types of coverage for renters insurance:
- Personal property: The cost to repair or replace your clothes, furniture, electronics, and anything else in the dwelling not owned by the landlord or property management group.
- Liability: Insurance may cover repairs if you damage someone else’s property or inflict bodily harm on another person.
- Loss of Use: If you make a claim and your residence is uninhabitable, your renters insurance may help cover your hotel bills and other associated costs.
Much like a homeowner’s policy, renters insurance also provides some coverage outside of your residence—namely, for theft and liability. So if your laptop is stolen out of your car or you accidentally run over someone with your golf cart, you may still have coverage.
What Isn’t Covered?
As a renter, you’re not responsible for the property you’re living in and its structure. That is covered by your landlord’s insurance, as are any injuries or damage caused by that structure.
Renters insurance rarely covers “acts of God,” such as earthquakes, sewage backup, or floods, so if you live in an area you think is susceptible to these accidents, you would need to purchase an additional policy.
Expensive jewelry or clothing, high-end electronics, and other unusual and expensive items are also not covered in basic renters insurance plans. For these items, you can purchase floater insurance, which is additional coverage for valuables that are easily moved and difficult to replace.
In every other way, renters insurance is similar to homeowners insurance.
Do I Need Renters Insurance?
An increasing number of landlords and apartment complexes are requiring tenants to carry some form of renters insurance, so you may not have much of a choice in this matter.
However, even if you’re not required to carry it, it’s still a good idea.
First of all, renters insurance is one of the most affordable types of policies available, so there is little risk involved in adding the extra protection. The average cost of renters insurance in the US is just $200 a year—well worth the added peace of mind.
As a renter, you are just as vulnerable to theft, fire, and water damage as a homeowner. You may not need to pay for roof or drywall replacement, but can you afford to replace everything else you own?
Renters insurance is an affordable way to have some assistance if you suddenly find yourself in need of a hotel for a couple weeks or with half your wardrobe destroyed instantly.
Conclusion
Like all insurance policies, renters insurance is something you want to have but don’t ever want to use. As we’ve discussed, renters insurance is not only extremely affordable, but it’s also very helpful in a time of need.
At Harry Levine Insurance, we’re here to help you find the policy that fits your lifestyle. We want you to be adequately covered in the face of unforeseen events, and we have decades of experience ready to help you get there.
Contact us today to find a renters insurance policy that’s right for you.
