If you own a car, the law says you must have insurance to protect others. If you have a mortgage, the bank says you must have insurance to protect them. But, when you’re a renter, it’s up to you to protect yourself—that’s where Renters Insurance comes in.
Put simply, Renters Insurance protects you for the loss of your personal property AND provides you with Liability Protection in case you cause bodily harm or damage to others’ property, even when you’re not inside your apartment.
Unfortunately, less than 40% of renters have a renters’ policy. And, that’s because of these common questions:
Doesn’t the Landlord’s Policy cover me?
No, your Landlord’s property insurance is only to protect their building, and their stuff.
Why do I need it if I own very little?
Walk around your place and take inventory. My guess is you’ll count multiple televisions, sound systems, computers, cameras, bedroom furniture, living room furniture, kitchen equipment, bicycles, clothing (suits, dresses, sports gear, shoes), and valuables (gifts, art, family furniture). Add up the replacement value, that’s how much you’re out after a bad disaster.
Why would I need Liability Insurance?
This could be the most important of all. If someone is injured by you—a friend, a neighbor, a stranger—they could sue you. Remember your last holiday party? Don’t forget that some of your friends are knuckleheads. Liability coverage can even cover you while riding a bike, for injury you do to others.
The good news is, Renters Insurance is very inexpensive. You can purchase just what you need and modify it whenever you need to. To get the right coverage at the best pricing, contact your broker. Not having Renters Insurance is a mistake you really can not afford to make, why?
Your Personal Property
On average, when an individual does a careful review of their belongings, most are surprised to discover that they own over $20,000 of stuff. All of these items are protected by a renters’ policy against a long list of perils, including fire, lightning, smoke, theft, ice, plumbing, and more. If it all goes at once (building fire, water pipe break) you’re on the hook for that whole number at once.
Your Liability Coverage
The Liability Coverage is also included in the standard policy. This provides protection if someone is injured by you or any other person covered on this policy. This personal liability is not just limited to what happens in your home. It pays court judgments, as well as legal expenses, up to the policy limit. Most policies provide at least $100,000 of liability coverage and between $1,000 and $5,000 for medical-payments coverage.
And there are bonuses!
When travelling, Renters Insurance can cover your personal belongings, whether they are in your home, car, or with you due to theft and other covered losses.
If your home becomes uninhabitable due to one of the covered perils, your renters’ policy may cover “additional living expenses,” including the cost associated with living somewhere else temporarily, food and more.
In summary, a renter needs Renters Insurance to protect the things they own and as security against claims that can be made against them. To evaluate the most appropriate coverage it’s best to talk with a good broker to review your situation and true concerns. That’s where we come in.