Why Renters need Insurance

Many renters are only partially correct under the assumption that if they are living in an apartment or rented building, they are protected under the landlord’s insurance policy. Every Renters’ insurance policy will vary depending upon the company that provides coverage, how much coverage is purchased and the exact situation. Short of smoking in the apartment and in many cases owning specific types of pets, landlords and apartment owners try to make potential renters as welcomed as possible. For most other cases, the landlord or property manager will just take your deposit if you create substantial damage to the property.

What happens if there is a fire in the building and your property is destroyed? This is the part in the not so small print of your policy that says something about not being liable for damage to personal property and a good rental agreement may require you to obtain renters insurance before they will close on the agreement.

So why renters insurance?

Protection for both the landlord and renters

If the sidewalks weren’t treated and a tenant slipped and fell, the policy might provide coverage for any medical bills.

Most insurance policies held by a landlord will cover damage to the building structure and very limited coverage for certain types of negligent situations. Requiring, or at least strongly encouraging, renters to carry Renters’ insurance protects not only the individual renters, but also the landlord and apartment owner, as well as the other renters in the building.

Coverage for personal belongings that may be damaged by storms, theft or fire is not provided to renters under the landlord’s insurance policy. Injuries that occur to guests and even damage caused by other renters, such as a hot water tank leaking, may not be covered either under a landlord’s insurance policy. However, these situations would be covered under a Renters’ insurance policy.

Have questions? Send me a email or visit my website: farmersagent.com/mdrayton

Here are some situations where renters insurance will prove invaluable:

1. Coverage for theft of personal belongings

In the event renters are victims of a burglary and their personal belongings are stolen, Renters’ insurance will provide coverage to help replace the items that were lost.  

Some Renters’ insurance policies will also provide coverage if the personal belongings are not in the home. For example, if you go on vacation and a laptop is stolen from the hotel room, Renters’ insurance may provide help replacing that laptop if you file a claim.

2. Help with living expenses when displaced by a storm or other natural disaster

Renters who find themselves displaced after a tornado, hurricane, fire or other natural disaster may be able to seek help from their Renters’ insurance.

Renters’ insurance may provide compensation that will help these individuals find temporary lodging. If relocation services are needed because the building is uninhabitable or not able to be restored, the Renters’ insurance policy may help with that, too.

3. Getting proper Renters’ insurance coverage

There are dozens of different types of Renters’ insurance and all do not provide the same type of coverage. Here are some for do’s and don’ts associated with Renters’ insurance for apartment owners/landlords:

  • Make sure personal liability is included.

  • Determine how much coverage may be needed to cover repairs caused by damage.

  • Make sure coverage includes unexpected actions — storms, neighbors causing damage, theft, etc.

Have questions? Send me a email or visit my website: farmersagent.com/mdrayton