Do you rent the home or apartment in which you live? If so, have you ever wondered how your stuff is covered in the event of a loss such as a fire or a break in? This is something many of us don’t think about until it’s too late and one of those things has just happened to us. In this article I will answer common questions and touch on the importance of protecting ourselves in a rental situation.
What is Renters Insurance and who needs it? Renters Insurance is a policy that protects a person or family that rents their home from common losses like a fire. It is similar to a Home Owners policy for people that own their homes.
Who can benefit from a Renters Policy? Really, anyone who rents: a family renting a single-family home, a single adult renting an apartment, a roommate situation. If you have a young adult heading off to college and renting an apartment with a roommate, both would have to get their own policy. In most cases a young adult in a dormitory would be covered under their parent’s home policy.
What coverage do they provide? There are three primary coverages with Renters Insurance:
- Contents Coverage. This provides coverage for your “stuff”; your personal belongings such as clothing, furniture, dishes, etc. You can discuss with your agent how much coverage is needed for your particular situation.
- Liability Coverage. This protects you from lawsuits for bodily injury or property damage (outside of an auto accident). A good example of this would be inviting a friend over who trips on your rug and breaks their ankle. The liability portion of the Renters Policy would cover you in this scenario.
- Loss of Use Coverage. Although all coverages are equally important this one sometimes goes overlooked and can be one of the most helpful in a loss. Loss of Use coverage will pay for emergency food and clothing, hotel stay and additional living expense for up to one year in most cases. Imagine if you lived in an apartment building that caught on fire and the entire building was evacuated. In a moment you are completely displaced. Loss of Use Coverage can help take care of you in this critical time.
One thing to remember: Your landlord is not responsible for your personal belongings or your liability, and usually doesn’t have any responsibility to take care of you at the time of a loss. Renters: it’s very smart to have a Renters Insurance Policy in place. And landlords: it’s good policy to require your tenants to carry Renters Insurance.
About the Author: Patricia Pipkin of Allstate Insurance provides area families with a wide variety of coverage and services. To learn more, call 847.201.4905 or email firstname.lastname@example.org.