Renters Need Insurance Too

Many renters think that their landlord’s insurance policy will cover damages in the event of a disaster. This is true only in part. Most homeowner’s policies cover natural disasters and physical property damage for the structure of the home, not personal items.  According to statistics taken from rentersinsure.com, the average renter in an average size space may have up to 20,000 in personal belongings in their home. 

Common Cause of Personal Property Loss

• Windstorms
• Fire
• Smoke damage
• Lightning damage
• Theft and vandalism
• Water damage
• Structural damage
• Damage caused by faulty contractor jobs 

These types of disasters occur every day. Think about the thousands of dollars of belongings that are inside of your rental home.   Most people carry a lifetime of belongings with them when they move and keep them in the space they call home, be that a house or an apartment.  What you own is often inside of your apartments or home.  There are alarming numbers of renters who do not even consider purchasing renters insurance to protect their possessions.  Your belongings in addition to having irreplaceable sentimental value may have irreplaceable monetary value that will not be covered in the event of a disaster unless the renter takes the proper steps to protect them in the event of an unforeseen disaster. 

Natural disasters do occur every day causing thousands of dollars in damages to homes and the property inside.  If a natural disaster occurs not only might you be displaced as a renter but you may be without your necessary everyday possessions if you have not taken the necessary steps to cover them with appropriate renters insurance.  Renter’s insurance policies can be shopped to meet your unique needs. Policies vary in price from basic to comprehensive coverage. Your coverage should depend on the valuables that you have in your home. 

As we all know every insurance policy from car to pet to medical has clauses and exemptions that are often only listed in the fine print. This is also true with homeowners insurance. Not every policy covers every possible occurrence.  Most policies do not cover personal belongings for tenants.  It is very uncommon that a typical homeowner’s policy would cover renter’s belongings in the event of a disaster.  Renters should be aware that in the event of a disaster your belongings may not be covered in full or even at all. Do not assume that you will be covered. 

Some choose to rent because they do not want or can’t afford the expenses associated with homeownership.  The reality with insurance is that personal property is not considered a covered expense in most landlords’ insurance policy.  Yes, renters insurance does have a cost associated with it.  Considering the potentially expensive risk you take if you are not covered is well worth the few hundred dollars you will be paying for the peace of mind and protection of your lifetime of personal possessions.