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Renters Insurance

Renters Insurance Information for Tenants

Renters usually don’t realize it, but they are at risk for losing their valuables and facing potential lawsuits. This is because renters need insurance to provide financial assistance when disaster strikes. The landlord’s insurance does not cover personal belongings or liability for the tenant. So if someone is hurt in a tenant’s apartment, the person can possibly sue the tenant for damages. And if a fire or theft occurs, the tenant will have no discourse for reimbursement if they don’t have renters insurance.

According to insurance professionals, only 40 percent of renters have renters insurance. This means that for 60 percent of renters, they will pay out of pocket if they experience a mishap and need to replace things like furniture, clothing, computers, cell phones and tablets.

You might not want the extra expense, but buying insurance is inexpensive compared to the costs of replacing the items. Insurance covers damage or loss associated with several types of disasters, including: lightning, windstorm, hail, explosions, riots, smoke, vandalism, theft and more.

Not all incidents are covered. Exclusions include damages caused by floods, war, neglect and intentional destruction of property and seizure of property.

Insurance companies use actual cash value and replacement costs to determine how your property will be valued. Actual cash value pays for the value of the item at the time the loss occurred. Replacement cost pays for the amount of money it would cost to replace the item.