Insurance, in general, is a topic that not many people enjoy thinking about – unless you are an insurance geek like me. It is often viewed as something renters are required to carry, either by contract or law, so that's why people buy it.
Well, let's take the "thinking" out of it and discuss what renters insurance is, what it covers, and why you should have it.
What Is Renters Insurance?
According to Nationwide Insurance, renters insurance protects your personal property in a rented apartment, condo, or home from unexpected circumstances such as theft, fire, or sewer backup damage – and it pays you for lost or damaged possessions. It can also help protect you from liability if someone is injured on your property.
Renters insurance is similar in scope to homeowners insurance, with the exception that it does not provide coverage for the dwelling itself or other structures.
It's important to understand that the Property and Liability Insurance coverage that landlords carry does not extend to renters. In reality, the property owner has no insurable interest in your liability or your stuff because it is yours.
BluCanopy recommends that all tenants purchase a renters insurance policy to protect their liability and personal property (e.g., TVs, computers, tablets, and furniture)
What Does Renters Insurance Cover?
A renters insurance policy provides coverage for the loss or destruction of personal belongings in the event of a covered peril such as:
- A frozen plumbing system
- Impact by a vehicle
Renters insurance may also provide coverage in the following situations:
- You are forced to temporarily move out of your home. In the event your home becomes unlivable due to damage caused by a covered instance such as a fire or vandalism, renters insurance can help cover the cost of alternative living arrangements while your home is repaired or rebuilt.
- A person is injured on your property and requires medical attention. Personal liability coverage is designed to protect you, as well as other individuals who visit your home, if an accident were to occur. This type of coverage will help pay for medical costs and legal fees that you could end up incurring.
- Items you keep inside your car are damaged or lost. Depending on your renters insurance policy, you may be covered for belongings that you keep inside your car. Note that this coverage does not include equipment or systems installed in the car.
What Is Not Covered By Renters Insurance?
Now that you have a basic idea of what renters insurance covers, it's important to understand what a basic renters insurance policy does not cover so that you're prepared:
- Valuables. Expensive collectables and valuables, such as jewelry, may not be covered under a basic renters policy and may require additional coverage.
- Home business. Operating a small business out of your home doesn't mean it will be covered by your renters insurance. For instance, if your business laptop is stolen from your apartment, there's a chance it could be considered business property and therefore, won't be completely covered by your renters insurance. Check with your provider to see if your policy covers a home business or if you need additional coverage.
- Motorized vehicles. Use or ownership of a motor vehicle will not be covered by your renters insurance, even if it is parked on your property (this also applies to aircraft and specific watercraft). Personal belongings kept inside the vehicle, however, are typically covered.
Why Should You Have Renters Insurance?
The intention of insurance is to transfer your financial risk on to someone else in the event of a loss — in this case, an insurance company. If you think you don't need renters insurance because you "don't have that much stuff," I challenge you to go through your closet and add up the cost of a new wardrobe, new shoes, new bed, new couch, new TV, etc. Once you've added everything up, I think you will be surprised at how much it costs.
Let's say you are saving up for a large purchase. Maybe that's a home of your own, a wedding, or a new car. Wouldn't you do whatever you could to ensure that nothing happened to that money? Well, if you do not carry renters insurance and something happened, you might as well kiss that money good bye.
Don't take the risk! Renters insurance is affordable and easy with BluCanopy. Get your quote and buy online in minutes.