Renters Insurance: Why It's Not Just for Your Landlord

Everyone knows that vehicle owners and homeowners need auto insurance and homeowners insurance–that’s not up for debate. But one type of insurance that is often misunderstood and ignored is just as important: renters insurance. At BK Insurance & Financial Services, we’re here to set misconceptions straight and advocate for one of the most underappreciated but impactful forms of insurance. Keep reading to see if it’s something that could benefit your current living situation, and always feel free to contact us with additional questions or concerns.

What Is Renters Insurance?

Much like it sounds, renters insurance is a protective policy that exists to help renters protect themselves from liability and protect their property in the event of damage. As is true with any insurance policy, there are limitations and exemptions, but in general, a renters insurance policy provides the following forms of protection:

• Property: covers the cost of replacing personal property impacted by fire, theft, vandalism, and certain types of water damage
• Liability: protects against third-party injury or property damage
• Temporary living expenses: ensure that you have the necessities of life if a covered event makes your rental unit temporarily unlivable

Common perils covered by most renters insurance policies include:

• Fire and smoke damage 
• Windstorm, lightning, and hail
• Damage by aircraft or vehicle (not your own)
• Theft
• Leakage or overflow of water or steam
• Short-circuit damage caused by electrical appliances

Beyond these vital protections, renters insurance is also often required by landlords as part of a lease agreement. Why? Because it ensures that they and their property are protected. But renters insurance is really a win for renters themselves. 

Common Misconceptions About Renters Insurance

Before we get into why renters insurance is so vital for anyone who is renting their living quarters–apartment, single-family house, townhouse, duplex, condominium, etc.–let’s dive into some common misconceptions that may steer folks clear of this vital protection.

• The landlord's insurance covers your stuff. Your landlord's policy only covers the building itself. In the event that fire, theft, or another disaster impacts your personal belongings, you will have to replace them yourself.
• You don’t think you own anything valuable. This may be true, but could you easily afford to replace everything you own–furniture, electronics, appliances, clothing, etc.–if it all went up in flames, was stolen, or was otherwise damaged beyond repair?
• You’re always careful, so you don't need renters insurance. It’s good that you’re careful–we love that! But accidents happen to even the most careful of people, from a kitchen fire to a guest being injured or theft while you’re out of town.
• Renters insurance is too expensive. This is so far from true, and many of us waste the cost of a renters policy–$15-$20 per month–on frivolous purchases without thinking. In fact, renters insurance is one of the most affordable types of insurance there is.
• It only covers personal belongings. Renters insurance actually includes liability coverage along with property replacement provisions. That means that if you’re sued for property damages or if someone is injured, your policy can help to pay for legal fees and medical bills.

While we initially think of renters insurance as covering you and your property in your home, like homeowners insurance, the protection can also follow you outside of your home. For instance, if your property is stolen while you’re out and about, renters insurance can likely reimburse you. And if you’re at another person’s home and cause damage to their property, the liability portion of your policy can kick in to pay for damages you’ve caused. Renters insurance really has your back at every step.

While you’re cataloging your personal property and adding up the cost of replacement, it’s worth considering whether or not you may benefit from an additional rider or floater that increases policy limits for collectibles or commercial property. If you have any sort of collectibles, family heirlooms, or if you have equipment that’s needed for your job stored in your rental, these may exceed the limits of a typical renters policy, and so extended coverage would be a necessary safeguard. Ask, too, about Identity Theft coverage, which can help to cover all of the costs associated with recovery after identity theft. And remember: roommates each need their own policy to protect their own personal belongings.

The Importance of Renters Insurance

Clearly, renters insurance is important for each and every renter out there! For a small monthly fee, you can rest easy, knowing that you’re protected against a total loss of your belongings and that you have an advocate if you get into a liability situation. That said, estimates put the number of renters who carry renters insurance at only about 50%, give or take. That means that a lot of people–up to half of all renters–are at risk should an accident happen and they lose their belongings or find themselves on the wrong end of a legal matter.

For such affordable coverage, is it really worth the risk that not having this policy brings? We’d of course argue that no, the risk isn’t worth the extra pocket money every month. And while this is a personal decision, it seems pretty logical to carry a policy, especially if a renter has a family and a home full of belongings that would be expensive to replace after loss or theft. Knowing that you’re protected, come what may, brings peace of mind and is a simple way to provide for the ones you love most.

Rental, Car, and Home Insurance in Kent

After putting myths to bed and establishing the truth about rental insurance, it’s obvious that this beneficial protection is a must-have–there really is no reason for a tenant not to have renters insurance. It’s affordable, easily obtained, and offers renters invaluable protection and greater financial stability in the face of risk. While it also ensures that a landlord’s property is protected from damage, that isn’t the main focus. Instead, renters insurance is a great way to take care of yourself and your family and ensure that if life throws you a worst-case scenario, you have a safety net to fall back on, even as a renter.

And because renters or tenants insurance is typically bundles with auto insurance and other policies, it is an even more affordable option. There’s no reason to miss out on this protection and embrace risk–contact our team to learn more about renters insurance.

Whether you’re in need of renters insurance, car insurance in Kent, or small business insurance in Ohio, look no further–the team at BK Insurance & Financial Services is here to help.