For most people, homeowners insurance and auto insurance policies are a simple part of life. When you get a loan for a home, you’re usually required to have homeowners insurance just as the law requires drivers have car insurance. Renters insurance, on the other hand, isn’t as familiar This is because when you rent a house or apartment, your landlord often won’t require you to get your own renters insurance because he or she already has the property insured. However, there are several gaps in this coverage model many tenants overlook. It’s important for renters to understand exactly what landlords’ insurance policies cover, what renters insurance policies cover and why renters insurance is the best way to protect yourself and your personal belongings.
Common Misconceptions
One of the reasons so few renters get renters insurance is because it isn’t required. The other reason is because many renters assume because their landlord is responsible for insuring the entire property (apartment or house), as well as personal possessions, against unexpected damages that could be caused by fire, flooding, or other disasters. However, this isn’t the case. Insurance policies held by landlords only cover structural damage to the building, not the personal property of the tenants. In other words, if your apartment building burned to the ground in a fire, your landlord’s insurance would pay to rebuild the property and all of your property would be lost.
Renters Insurance Breakdown
Renters insurance policies typically offer three types of coverage. These include:
- Personal property coverage protects your property from both theft and damage. If you look at all your belongings, including your furniture, clothing, electronics, appliances, and more, you could be risking thousands of dollars without renters insurance.
- Renters insurance covers additional living expenses you’d otherwise have to pay yourself during the time it takes for your building to be repaired or rebuilt.
- In addition to personal property coverage, renters insurance also comes with liability protection. This covers any accidental injuries and other property damages. For example, if a visitor is unintentionally injured and sues you, your liability coverage would pay legal defense costs and any other financial loss up to your policy limit.
It’s a wise idea for all renters to protect themselves with some type of renters insurance policy. Some may need more coverage than others, depending on the value of their belongings. Certain types of property, such as fine jewelry and artwork, may require additional coverage to be fully protected. However, if you’re looking for a basic, inexpensive renters insurance policy, you can expect to pay an average of $15 to $30 per month. Are you looking for a renters insurance policy to fully protect your property and finances? Contact us to consult one of our insurance agents in Dallas to decide what kind of coverage you need.