6 reasons renters need their own insurance

Renters insurance can provide affordable protection from loss.

Most people know renters insurance covers belongings. But did you know it covers more than just personal property?

Many people erroneously assume they are covered by their landlord’s policy and skip this important protection. Many also underestimate the value of their possessions and feel insurance is unnecessary. If you consider the value of just your clothing and electronics, it probably wouldn’t take long to add up to thousands of dollars.

If you rent your home and still are unsure whether you need insurance, here are six good reasons to have a renters policy.

Your landlord might require it.

While your landlord’s insurance covers the building itself and the grounds, it does not cover your belongings or your personal liability. Also, a growing number of landlords require tenants to purchase their own insurance policies and expect to see proof. This requirement could be the landlord’s idea or a requirement from their insurance carrier.

You may want coverage for personal property.

A renters insurance policy protects against covered losses to your personal belongs, including clothes, jewelry, luggage, furniture and electronics. However, it’s important to know what causes of loss are covered, if your policy has any exclusions and if there are any special limits for a single category such as jewelry or guns.

Please contact your independent insurance agent to discuss your policy’s coverage and limitations.

You may need liability protection.

Liability coverage is also included in standard renters policies. Liability coverage may provide you with protection if someone is injured while at your residence or if you or another person covered on your policy accidentally injures someone. Your policy will pay those sums you become legally obligated to pay due to a covered loss up to the policy limit. The policy will also have a duty to defend you against others seeking damages, as long as it’s a covered loss. It’s imperative to discuss coverages and limits with your agent to make sure you have adequate limits for you and your household.

You may want coverage for your belongings when you travel.

Renters insurance doesn’t just cover your possessions while they are in your residence. Your belongings also are covered from loss due to theft and other covered losses, subject to sublimits, in your car or anywhere you travel. Check with your agent about other situations that may be covered.

You may need additional living expenses in the event you are displaced.

If your residence becomes uninhabitable due to a covered peril listed in your policy, your renters policy may cover “additional living expenses,” including the cost associated with living somewhere else temporarily, food, laundry and more. Check with your agent to find out how long it would cover additional living expenses, and if the policy has a limit on the amount the insurance will pay.

Renters insurance is affordable.

Your cost will depend on many factors, including what the policy covers, how much coverage you need, the amount of your deductible and where you live. But in most cases, renters insurance is worth the nominal premium.

LAST WORDS

Renters insurance covers your personal belongings and provides personal liability coverage. Be sure to understand what your policy covers, what limits are adequate for your needs and any deductibles that will apply in the event of a claim. It’s best to talk to a local independent agent who can discuss your individual needs and find the right carrier and coverage for you.

Coverages described here are in the most general terms and are subject to actual policy conditions and exclusions. For actual coverage wording, conditions and exclusions, refer to the policy or contact your independent agent.

Claim scenarios are for educational purposes only. Every claim is adjusted according to its own specific set of facts. Whether or not insurance coverage would apply to any claim is dependent on the facts and circumstances of each individual claim and the language of the insurance policy.