Why Tenants Need Renter’s Insurance!
One common mistake made by renters is to assume they do not need homeowner’s insurance because they are not the “owner”. However, a renter may sustain losses not covered by the policy carried by the property owner. That is why there is a category of insurance specifically for people renting a home.
The property owner’s policy does not cover personal property belonging to the renter.
It is the responsibility of the individual tenant to obtain insurance for their personal
possessions. The exclusion of your property includes, but is not limited to, such events
as fire or theft.
Types of Losses
In addition to fire and theft, renter’s insurance will cover your personal property in a
range of other losses or “events”, whether or not the property loss (or damage) occurs
at your home or in another location.
Most policies provide coverage for damage due to windstorms, hail, explosions,
vandalism, a riot, civil disturbance and even a volcano! However, damage caused by
earthquake or flood must be purchased separately with an endorsement to your policy
or by purchasing an additional policy.
Like other types of insurance, a renter’s policy sets limits of coverage for some
categories of personal property; i.e. jewelry, silverware, and collectibles. Check with the
insurance agent to determine what categories may have limited coverage. Should the
value of your property exceed standard limits, you may choose to increase the coverage
of your renter’s policy, or to insure items separately.
In addition to coverage for your personal property, a renter’s policy also provides liability
coverage. And, why do you need liability coverage when the property owner’s policy
has it? The owner’s policy covers their liability, only. It does not cover your liability.
Renter’s insurance covers your liability, within limits, (providing the loss was not
intentional). Liability coverage is not limited to damage to your property, or that
belonging to others, if an event occurs at your residence. It also covers legal defense
expenses and your personal liability outside the home.
You may qualify for a multiple-policy discount if you purchase your renter’s insurance
from the same company carrying your automobile insurance. Other savings are
available through some carriers if your residence is equipped with deadbolt locks, a fire
extinguisher or a security alarm.