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All About Renters Insurance: Your Questions Answered

insurance for rentersAlthough homeowners are often seen as having more rights to the property they purchase, renters have every right to protect their possessions, too. You may not own your home, but you’re entitled to safeguard all of the items you own inside it. Obtaining insurance for renters will ensure that lost, stolen, or damaged property could be covered by your policy. And if someone is hurt in your apartment, insurance for renters may provide you with liability coverage if you are sued. In today’s post, we’ll take a closer look at what renters insurance covers and why having an insurance policy for renters is necessary.

What Does Renters Insurance Cover?

Insurance for renters typically cover the cost of lost or damaged items that occur due to theft, vandalism, or fire. In fact, your renters insurance policy will also cover property damage sustained due to lightning, wind, hail, riots, explosions, vehicular damage (other than your own), falling objects, volcanic eruptions, the weight of snow and ice, heating systems, leaks, frozen pipes, and short-circuiting appliances. The costs of repairs or replacement will be financially reimbursed to you, up to the coverage limit set by the type of policy you have. Renters insurance will also cover any extra costs you incur if your apartment is deemed uninhabitable due to fire or burglary. For example, if you have to stay in a hotel or other facility while your home is being repaired, your renters insurance will cover the additional costs.

It’s also important to note that this type of insurance will also provide personal liability insurance. That means if someone is injured in your apartment and the injury is deemed to be your fault, your insurance may cover the cost of the injured party’s medical bills and even their lost wages.

What Doesn’t Insurance for Renters Cover?

Your renters insurance policy won’t cover property or liability costs that are over your policy limit. It also will not cover the costs of repairing structural damage to the building in which you reside, as that isn’t property you actually own. Keep in mind that damage incurred due to natural disasters like floods, earthquakes, and sinkholes aren’t covered by renters insurance. Just like with homeowners insurance, you’ll need to purchase a separate policy if you live in an area prone to flooding. Damage due to pest activity or acts of terrorism aren’t covered, either.

Do I Really Need Renters Insurance?

In a word, yes. Between 2011 and 2016, the percentage of renters who had these types of insurance policies increased from 29% to 41%. That’s encouraging news, as it means more renters are now aware of the benefits of having insurance coverage. However, too many renters still believe that obtaining this coverage is too expensive or not worth the hassle.

Even if you don’t have a lot of possessions or valuables, you should still consider buying renters insurance. If you couldn’t afford to replace all of your furniture, appliances, electronics, and other items after a fire or after a break-in, insurance coverage is really the best way to safeguard your future.

Some renters will assume that their landlord will help them or that law enforcement will provide assistance in the event of a fire or a burglary. Unfortunately, your landlord’s insurance coverage will only pertain to the building itself — not the items inside that they own. And while police might be successful in recovering items stolen from your apartment, you definitely shouldn’t count on it. Renters insurance coverage really isn’t that expensive, either. Most people will pay less than $200 a year to obtain that valuable peace of mind.

If you’re a renter, you shouldn’t roll the dice and hope that nothing will ever happen to your belongings. Insurance coverage can help you get back on your feet after a traumatic event without presenting an undue financial burden. To find out more about the renters insurance North Dakota residents count on, please contact us today.