Renters insurance covers your personal belongings and provides liability coverage when you’re living in an apartment, house or condo that you don’t own.  Renters insurance covers many of the same scenarios – most notably fire and theft – but it’s much cheaper than homeowners insurance because if only includes coverage for what’s inside the home, not the structure itself.  Think renter’s insurance is only for your stuff? Think again. 

One of the perks of renting is that it’s your landlord’s responsibility – not yours – to insure the building and make necessary repairs.  But, as a tenant you’re not off the hook completely.  Your landlord’s insurance will not pay to replace your belongings in the event of a claim.  If a storm destroys the building or a thief breaks into your apartment, in order to have coverage for these (and many other) disasters, you’ll need a renters insurance policy.  As an agent, this is one of the most common insurance misconceptions we see: consumers believing their landlord’s insurance would cover these certain situations. 

Safeco Insurance outlines three key financial protections a renters policy provides:

  • Your stuff – clothing, furniture and other belongings in case of disaster or theft
  • Additional living expenses – hotel stays and restaurant meals may be covered if you’re displaced from your home from a disaster
  • Liability – if you’re sued for injuries in your home, or harm to other people’s property, renters insurance may pay for damages and legal expenses.

Most insurance companies offer two reimbursement options for your renters policy:

  • Replacement cost policies pay for the actual cost of replacing your possessions with new ones.  For example, if your TV is ruined, you’d get enough to buy a new, similar TV.
  • Actual cash value policies pay to replace your belongings based on their value at the time they are damaged (or stolen).  That means that if your TV is a few years old, your claim check would be enough to buy a 2-year-old TV.  In order to get a brand new TV, you’d pay the difference yourself. 

Even if you think you don’t own anything of high value, take a minute to mentally add up everything you own – or just the outfit you’re currently wearing.  Now imagine how much it would cost to replace it all.  It’s very likely that it’s a higher number than you thought.  This is the importance of renters insurance. 

An experienced agent will guide you through renters insurance, making sure you’re aware of your options and helping you select an amount of coverage that fits your situation.  Email Kate at kate@fdinsurancegroup.com to begin the conversation on protection your personal property with renters insurance. 

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