Renters Insurance

What Does It Cover and Who Needs It:

Many of renters either do not know about homeowners insurance available to them or simply do not take advantage of this type of insurance. Many more renters feel that renter’s insurance is either too expensive or not necessary given their living conditions. Still others have valuable furnishings, which if damaged by flooding or burglary will need to be replaced.

Why should a “renter” have an insurance policy when his landlord owns the structure rented? Because the landlord's insurance does not cover the renter’s personal property. If the apartment is vandalized or burglarized the landlord is generally not responsible for the damage to renter’s personal property.

Personal property such as clothes, electronic devices, furniture, televisions, jewelry, or personal computers are not covered against destruction or loss by the landlord's insurance. If the apartment is flooded, the landlord’s insurance will cover the damage to the structure and its fixtures but will not buy the renter a new couch.

While the landlord may be sympathetic and concerned about a renter’s loss, absent some sort of hidden negligence or contractual arrangement, he or she is not responsible for the renter’s loss.

Renters insurance replaces damaged or stolen personal property of the renter against damage caused by one of the 17 perils listed in HO-3. With renter’s insurance, the renter’s personal possessions are covered against losses from events such as fire or smoke, lightning, vandalism, theft, explosion, windstorm, and water damage from plumbing.

Some renters, particularly in the high rent districts, have assets they need to protect. Unfortunately, depending on the state law where the renter resides, renters can incur liability when someone is injured on the property they are renting. Renters insurance covers the renter against personal injury claims resulting from accidents which occur on the renter’s premises as a result of negligent acts by the renter, a family member or the renter’s pet, and pays legal defense costs if the renter is involved in a lawsuit. These legal costs alone can be tens of thousands of dollars.

A renter’s policy can save the renter money because he or she will not need to buy liability protection with this type of policy in place. While renter’s insurance does not cover negligent acts while driving an automobile, or flying an airplane, it may cover other negligent acts committed by the renter off site of the rented premises.

Renter’s insurance is also handy to have if a homeowner is merely renting while his or her home is being built or rebuilt, or in escrow awaiting the prior homeowner’s departure. The last thing a new homeowner needs is to have his or her personal possessions stolen or destroyed before they have even moved into their new home. In this case short term renters insurance can protect those valuable treasures and heirlooms through the moving process.