In the typical rental property, most landlords will take proactive steps to protect their property and the belongings inside them. To guard against losses from fire outbreaks or theft, the landlord will usually buy insurance. But, even though property owners do their best to prevent loss or damage, the typical landlord insurance has its limitations.

It leaves tenants and their belongings unaccounted for. As a tenant, the house you live in and the landlord’s possession inside it are insured, but your possessions are not. That is because instead of covering everyone and everything within a building, landlord insurance makes a distinction between the tenant’s belongings and what belongs to the landlord.

For two important reasons, renters in a rental property are exposed to significant risks of losing their belongings if something bad happens. Firstly, the lease agreement does not make it the landlord’s responsibility to protect the renter’s possessions. Secondly, the landlord’s insurance goes out of its way to exclude anything not belonging to the landlord from the policy.

This leaves the tenant’s belongings exposed if an incident occurs that results in loss or damage to their property. But luckily there is a way to get around this. People living in a rented home can protect themselves and their belongings by buying a policy tailored to the needs of renters. This policy is called renters’ insurance.

Fireman at rented home fire

What is Renter’s Insurance?

It is an insurance policy that protects you from property loss and personal liability when you are living in a rented house, condo, or apartment. It provides you with the same level of coverage that property owners have through landlord insurance. Renter’s insurance protects belongings like clothing, jewelry, smartphones, artwork, furniture, and other personal belongings from damage or loss due to a range of perilous events including:

  • Fire, smoke, lightning, explosions, and electrical surges
  • Windstorm, hail, and volcanic eruptions
  • Riot, civil commotion, theft, vandalism, and malicious mischief
  • Damage by vehicles (including aircraft) and falling objects
  • Damage by weight of ice, snow, or sleet
  • Damage from accidental discharge of water/steam by household systems or appliances
  • And many more

Personal Property Coverage

You are protected against the loss of your personal property by the policy. This may be loss that occurs due to fire, smoke, or theft. However, the policy does not just cover your belongings when you are in your home. It will protect you if your belongings are stolen or damaged while you are traveling abroad. It will also protect you if they are stolen from your parked car.

Broken Glass Personal Property Damage

Renter’s insurance can either pay the replacement cost or actual cost of lost or damaged items. When the policy pays the replacement cost, it will pay out enough money to buy a new item, similar to the one that was lost or damaged. When it pays the actual cash value, it will pay you the estimated value of the lost or damaged item, which may only be enough to buy a used item.

Personal Liability Insurance

Personal Liability Coverage

In the event that a friend, neighbor, or some random person gets injured while inside your apartment, the policy will protect you if you are found personally liable for the person’s injuries. The coverage will include your legal fees, monies awarded to the other party, and their medical bills. Also, if your dog causes bodily harm to somebody, the policy will protect you

Other forms of liability that you are protected from include protection from losses you incur when you borrow someone’s property and it is lost or damaged in your apartment. Or you accidentally leave the kitchen tap running with the sink clogged or plugged and the water runs over and damages your neighbor’s apartment.

Protection against loss of use

If due to any reason your rented apartment becomes uninhabitable and you have to live elsewhere while it is being repaired, renter’s insurance will cover the additional living expenses. This includes situations where a home is damaged by a natural disaster, smoke or fire, and you have to live in a hotel temporarily.

Benefits of renter’s insurance to landlords

In addition to the benefits you get from this policy, renter’s insurance also benefits your landlord.

  • It helps landlords avoid liability claims from tenants whose belongings are damaged
  • It serves as a tenant-screening tool to judge the prospective tenant’s level of personal responsibility
  • It ensures that the landlord’s will not be burdened by the tenant’s relocation expenses if the home becomes uninhabitable
  • It shields the landlord’s insurance policy from claims by tenants

As a result of these benefits, many landlords are now requiring tenants to have renter’s insurance.

Cost of Renters Insurance

What is the Cost of Renter’s Insurance?

Compared to the amount of coverage you get under this policy, renter’s insurance is surprisingly cheap. The average renter’s insurance does not cost more than $200 a year. This means that for less than a dollar a day you can have adequate protection for all of your belongings. There is really no reason why you should not buy this policy today.

Have questions or looking for a quote? Contact Winstead Insurance today at (410) 398-6700