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Do I need Renters Insurance?

Updated: May 3, 2023

Renters Insurance
Renters Insurance

The cost of a renters insurance policy is really not that much.......... The average premium in is $100 per year! You can also get a significant discount on your Auto Insurance policy if you bundle with a Renter's policy.

In addition, for approximately $7 more a year, you can add on ID Theft.

***see footnote in BLUE at the end of this article for an example of an actual claim scenario

Millions of people live in rented homes and apartments, yet less than half of them have no renter’s insurance. A good percentage of them do not even know that renter’s insurance exists. A lot of the people who don’t have renter’s insurance falsely believe that somehow, their property is covered under their landlord’s insurance policy. This is far from the case since the landlord’s insurance policy only covers their building and other belongings in that building such as the security system, tools in the shed, backup generator, and other things. To ensure that your property in a rental home is covered, you need to buy renter’s insurance. The following is a breakdown of what’s covered by a basic renter’s insurance policy: 1. Personal property coverage Picture everything you own in your rented home; your tv, furniture, kitchen appliances, clothes, electronics, shoes, precious comic book collection, and other items. Think about how much you’ve spent to date to buy all those items; is it thousands, tens of thousands, or even hundreds of thousands? Now picture a fire starting in your kitchen and burning down all those possessions into ashes.

In this scenario, if you don’t have renter’s insurance, you might as well say goodbye to all those items since no one will compensate you. However, if you do have it, the personal property coverage aspect of the policy will cover the cost of replacing your stuff saving you from massive losses. Renter’s insurance ensured that your personal property is covered if it’s lost, stolen, or damaged by fire, hailstorms, or other disasters. It covers you up to the limits set in your policy. If your property is worth more than the limit, you should buy additional coverage to ensure that everything is covered. 2. Liability coverage This provides coverage against certain costs if you are found legally responsible for any injuries sustained to other people or damage to their property in your rented home. For instance, if you invite a friend over and he/she slips and falls down the stairs breaking an arm, your renter’s insurance will cover their medical costs and legal costs if they decide to sue.

Other examples of where your renter's insurance policy can help mitigate legal costs include: if your dog bites a guest who is visiting, or if you accidentally drop your friend's laptop that they brought over. 3. Additional living expenses

If your rented home or apartment is damaged by a fire, hailstorm, tornado, or other disasters, it may be rendered uninhabitable for the period during which repairs are being done. Renter’s insurance covers you for the costs you will incur as a result of having to seek alternative accommodation, increased cost of food above what you normally spend, increased cost of transport, and other expenses that arise as a result of damage to your home. (you will need to be able to produce receipts showing the expenses incurred while you temporarily moved out)

You may also want to add on Home Cyber Protection as well as Home Systems Protection for high-end electronics and appliances Conclusion Renter’s insurance is vital since when disaster strikes, it can really save you from financial ruin. However, since insurers and policies differ, it’s always important to ensure you get a renter’s insurance policy that covers your unique needs.

***claim scenario for ID theft. Policyholder began receiving legal notices of a foreclosure on a property he did not own. It was later discovered that a 3rd party had fraudulently used his identity to purchase a house. The policyholder incurred significant costs in hiring an attorney, taking time off work and paying various fees in order to resolve the matter. This was reimbursed by the carrier for their insurance policy. Absent the HO455 Identity Fraud and Resolution Services Coverage endorsement, there would have been no coverage for any aspect of this loss.

Woodland Park Insurance Services

~Where Buying Insurance is Like a Walk in the Park~


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