Renter’s Insurance – What You Don’t Know Can Cost You

Are you covered?

If you don’t have renter’s insurance it’s a good idea to take a hard look at your lease so you can assess your risk. Many renters believe that if their personal property is damaged as a result of their rental property suffering a fire, or wind damage or flooding caused by an appliance or plumbing owned by the building, that the landlord is responsible to make good on their personal loss. That is almost universally not the case.

As a general rule, you are responsible for your own property. Even if you can prove gross negligence on the part of the property owner you are looking at a long litigation battle and in the meantime your furniture is a smoldering pile, all your clothes are smoke damaged, your computers are toast and you need to find a place to live…right now!

Renter’s Insurance is About Much More Than Just Replacing Your Couch

Naturally when people think of renter’s insurance they think about the replacement cost of their belongings; after all, that’s how the policies are sold. While having adequate coverage to replace your property is important, don’t forget about the liability you face that could result in a significantly larger financial loss than if all your property was vaporized.

Often overlooked because it is not that well understood is the personal liability coverage that comes with renter’s insurance.
As a renter you face liability risks both on and off the property. The purpose of the liability coverage is to protect you financially in case you find yourself liable for someone else’s loss associated with a covered event.

• Did you know if you accidentally cause damage to your unit (leaving a faucet running and overflowing a tub) or to other units you can be responsible for the repairs and any loss the other tenants have?
• If your dog decides he wants a piece of your guest’s ankle you can be facing medical bills. The same applies if a guest trips and falls while in your rental unit.
• If you participate in a sport that involves sending a ball in a general direction with no assurances that it will land where you intended like golf or tennis, and that ball causes damage or injury when it lands you may be liable.
• If your son hits a broken bat single at a Little League game and the fat part of the bat beans a teammate in the warm up circle you could be looking at medical claims.

If your property is insured for $20,000 any one of the events listed above could potentially cost much more to resolve. Liability insurance is the big bargain that comes with a renter’s policy.

Getting covered is inexpensive

Speaking of cost, if you have a family of three you probably spend more on toothpaste per month than the cost of a $20,000 property and $500,000 liability policy. Take a moment to consider the comparative value of a $20 per month renter’s policy to a $150 per month cable bill.

If you have questions or would like more information on renter’s insurance please don’t hesitate to contact us.