Who Needs Renters Insurance?

Who needs rental insurance post image, family outside of a home with "For Rent" sign in front.

Often renters don’t realize how beneficial an insurance policy that protects their valuables in a catastrophe such as fire or theft.

It is a huge mistake to assume that damage or loss of your property will be covered by a landlord’s insurance policy!. Rental property owners commonly carry only enough insurance to repair or replace the building or structures. It is the renter responsibility to insure his or her own personal property..

While a landlord might be sympathetic towards you should you suffer a loss of personal property or become a victim of fire or burglary, they typically have no responsibility to replace or repair your personal property.

However, a good renters insurance policy will offer similar general personal property coverage as a homeowners policy would. This protects you against a loss from such things as theft, vandalism, fire, windstorms, lightning and even water damage from a busted water pipe..

 In the event that a rental property becomes uninhabitable, a renters insurance policy can even help offset some of the expenses necessary to relocate and temporarily live elsewhere. .

Renting is a popular lifestyle alternative to home ownership, however renters insurance is overlooked by most. Statistically, 37% of U.S. housing units are renter occupied, but most are uninsured. A recent study by the Insurance Information Institute showed that only 41 percent of renters own renters insurance.

A common error is the assumption that you don’t own enough items of value to make renters insurance coverage worth the cost. In truth however, the cost of replacing clothes, furniture, electronics and computers and even books easily adds up a cost of thousands of dollars.

Thinking in terms of Actual Cash Value vs. Full Replacement of an item is an essential consideration for renters when deciding on an actual cash value renters policy or a policy that covers the full cost of replacement.

Actual cash value coverage will allow an insurer to depreciate lost or damaged valuables based on their age. An example would be a 10-year-old couch. If it was stolen, its actual cash value would be similar to the cost of a used couch of similar age and condition. However, with a policy that covers a couch at full-replacement value, the insurer would compensate the policy owner based on what the cost of a new couch of the same quality is without applying any depreciation.

Then there is Renters Liability Coverage. Most renters insurance does more than just help replace valuables. It can help protect you from claims  or allegations of negligence. Just like standard homeowners insurance, renters insurance protects your liability for any injuries or property damage that you, family members or pets may inflict on others.

An example of this might be if you host a party on your rented property and someone slips and falls and gets hurt. You could possibly be held financially liable for the cost of treating their injuries. The liability protection of a good renters policy will pay for legal damages, up to policy limits in the event you were found to be negligent in causing an injury. The policy would even pay for legal defense of the renter.

You always wat to be sure and choose a renters policy with liability limits that are adequate to protect your own personal worth.

We can help protect you and your property with a quality renters insurance policy. Please call us at the Liveoak Agency to discuss your current insurance policies, and any changes that might be necessary!