Mortgage lenders require homeowners insurance, while the law requires car insurance. Homeowners and car owners do not typically argue the importance or need for either, but renters should also know the importance and need for renters insurance. In fact, your Fort Collins property managers or landlords may even insist that you get it because they know that renters insurance is more valuable to you than you may realize.
What Is Renters Insurance?
Renters insurance provides invaluable financial protection for you as a rental tenant in case of theft, vandalism, loss or destruction. It is available for those renting any type of home, from a studio apartment to a single-family house. With renters insurance, you can receive financial aid to help you cover the cost of replacing any personal property or belongings that have been damaged, destroyed, or stolen. It can also provide coverage for damage to the property from negligence or accidents along with coverage for liability claims against you as the renter.
Why Do You Need Renters Insurance?
Investing in renters insurance will provide you with the monetary support you need to limit the financial damage from an already difficult situation. The property owner will surely have an insurance policy on the house to cover any damages to the building and property, but their insurance will not cover any of your belongings as the renter. Renters insurance also gives you financial protection from damages that could result in a liability claim, such as an injury that wasn’t caused by the structure or property itself or damage to a neighbor’s home from flooding in your apartment. In short, you need renters insurance to protect yourself from unfortunate events.
What Does Renters Insurance Cover?
Although insurance policies cannot replace the sentimental value lost, they can help you to avoid the financial burden from replacing the possessions you’ve lost. Depending on the policy you select, renters insurance will help pay the costs of loss or damage due to certain disastrous events. The amount of compensation you receive will be dependent upon the policy you choose and are willing to pay for. Keep in mind that the most basic policy will only provide you with the most basic protection. Take some time to request quotes and gather as much information as possible on exactly what your renters insurance policy will cover in order to give yourself the best value for your money as well as the best protection.
Your renters insurance should provide coverage for:
- Personal Property
- Liability Protection
- Alternate Living Expenses
Most insurance policies will offer coverage for personal belongings found on the rental property that have been damaged, stolen or destroyed. Items covered can include furniture, electronics, clothes, jewelry, sports equipment, and more. However, there is a limited value on covered property. Additional coverage can be added to your policy to cover the cost of expensive personal articles that exceed the personal property limits.
Liability Protection provides coverage for bodily injury to someone on the premises caused by negligence or accidental incidents such as if your dog bites or injures a guest. With renters insurance, you will not have to carry the burden of medical care for anyone injured in your home, just as auto insurance helps to cover the costs of medical treatment for others after your vehicle is involved in an accident. Most renters insurance policies will not provide medical coverage for those already living in the house. However, some insurance agencies offer an option that allows you to purchase extended coverage.
Liability will also offer protection if damage is caused to surrounding properties due to your own negligence or actions; for example, if you leave the stove on and cause a fire that damages your neighbor’s home. Liability protection can help to cover court or legal fees if a lawsuit were to be filed against you.
Renters insurance can also cover unintentional damages caused by yourself or someone living in your home. For example, damages to the property caused by an accidental fire or flooding that were caused by your negligent actions. With a good renters insurance policy, you will not be financially burdened with the cost of repairing those damages.
Alternate Living Expenses, also known as Loss Of Use coverage, will help you cover the cost of an alternate living situation in the event that property loss and damage after an accident or disaster has made the rental home uninhabitable. This will help to pay for expenses such as hotel, food, and other related living expenses resulting from loss of use of the rental property.
When Is Coverage Available?
Coverage is often provided if damage or loss is caused due to:
- Unnatural Disasters such as fires resulting from electrical problems, flooding caused by plumbing issues or accidental water overflow, damage from sewage problems, and more
- Theft Or Break-In
- Loss Of Use
Renters insurance may not cover damages or destruction to the building or property as a result of natural disasters including hail, flooding, wildfire, tornados, earthquakes, or hurricanes. You may be able to purchase additional coverage for damages caused by natural disasters, such as flooding. Make sure that you are well informed of what exactly is covered in your standard policy.
All Property Services strongly recommends that our tenants invest in renters insurance. To learn more, contact us today.