1- Your Landlord’s Insurance Does Not Protect You
A common mistake renters make is believing that their landlord’s insurance policy will cover their personal belongings. This is not the case. A landlord’s insurance policy protects damage to their buildings and their liability if someone gets hurt on their property. Without a renters insurance policy, your personal belongings are not protected unless the loss is due to negligence on the part of your landlord.
2- It’s Affordable
Renters insurance can be inexpensive. Your price is determined by the amount of coverage you need and the deductible you choose. A higher deductible will lower the overall cost of your policy. Many insurance companies offer discounts for things that help prevent losses like smoke detectors, fire extinguishers, deadbolts, and sprinkler systems. And always package your renters insurance with your auto insurance to take advantage of multi-policy discounts. In many cases, the savings you get on your auto insurance will pay for the cost of the renters insurance!
3- Suffering A Total Loss Would Be Financially Devastating Without It
Suffering a total loss of all your personal belongings would be financially devastating for most people. Renters insurance policies will protect all of your personal belongings such as furniture, electronics, clothes, appliances you own, dishes, and other valuables. Some limitations will apply to things like valuable jewelry, firearms, silverware, antiques, fine art, collectibles, and other items of rare or unique value. So if you have these types of items, you will need to purchase special coverage to make sure they are protected too. And when you purchase your renters insurance policy… make sure your policy protects your personal belongings for Replacement Cost Value. Some policies provide protection for Actual Cash Value… meaning they would depreciate your personal belongings for age and wear & tear, much like auto insurance policies work.
4- You Are Responsible For Your Visitors
If someone gets hurt in your apartment, you can be held responsible. Renters insurance not only protects your personal belongings, but also includes coverage for liability and medical payments to others. So without renters insurance, you would be responsible for the legal fees and medical expenses out of your own pocket.
5- Students May Need Their Own Coverage
If your child is a student living away from home, your homeowners policy may not cover his or her belongings. Whether the student lives in the dorms or in an apartment, check your policy and discuss your options with your insurance agent. He/she may need to purchase a renters insurance policy.
6- Coverage For Loss Of Use
Similar to an auto insurance policy that pays for a rental car after an accident, your renters insurance policy will pay for living expenses such as a hotel and meals if you are unable to live in your home for a period of time after a loss occurs.
7- You Are Living With Someone Not Related To You
Just because you are not “renting” doesn’t mean you can’t purchase a renters insurance policy. If you are living with someone who is not a relative… their homeowner’s insurance does not provide protection for you. The most common situation is the boyfriend and girlfriend living together. The boyfriend owns the home and has a homeowners insurance policy that protects his (and household relatives) personal belongings, liability, and loss of use. His homeowner’s policy does not provide protection for his girlfriend that is living with him. The girlfriend needs to purchase a renters insurance policy to protect her personal belongings, liability, and loss of use.
Insurance Blog - By Jennifer Wells, CISR 