Landlords Might Want to Suggest Renters Insurance to Tenants

As those of us residing in the Tuscarawas Valley know all too well, this has once again been a very wet Spring. So wet in fact that floods and water damage have occurred in many housing units in the area. That got us thinking about the issue of renters insurance and thought it especially timely to talk about this subject again. Those people who know such things indicate that less than 20% of renters protect their household possessions by purchasing renters insurance. Although even renters insurance doesn't protect against so-called "Acts of God" such as the floods mentioned above, it is very important that tenants know the value of having such coverage. The following contains some basic information about renters insurance that landlords may want to routinely pass along to tenants as part of their leasing process.

You return home to your apartment to discover a water pipe has burst and your computer is sitting in two inches of water. You go away for the weekend and come home to find your home has been burglarized. You have a party and one of your guests slips in the kitchen and breaks her leg. The building you live in burns down, taking all your worldly possessions with it. 

These are scenarios none of us wish to contemplate, but they may happen at any time. How can you protect yourself if your home entertainment system is stolen, your best friend breaks her leg helping you hang curtains, or everything you own is lost in a fire?

Two words: Renters Insurance. Like homeowners insurance, renters insurance will protect all your personal possessions from loss and protect you from huge legal and medical bills should someone be injured in your apartment.

My landlord's insurance covers me. Not true. This is a common misconception among renters, and it is untrue in almost all situations. Your landlord carries insurance that will cover his loss in a situation where the building is destroyed or damaged in some way. Your landlord is covered in case someone (including a tenant) is injured on the property, though not in your apartment.

Renters insurance is expensive. Not true. The average renter can get complete coverage for a couple hundred dollars or less a year, depending on where he or she lives. This is a small price to pay for knowing that you and your belongings are protected, isn't it?

How do I get renters insurance? It's easy. If you have a car, talk to the agent who does your car insurance. If you don't, start with your friends. Ask them who their insurance agent is. Or head for the yellow pages. There is also this list of insurance companies who offer renters insurance,  though they don't have coverage in all areas. Shop around for the best rates and coverage for you.

What does renters insurance cover? A basic renters insurance policy will cover you in case your belongings are lost due to burglary, vandalism, fire, burst water pipes and the like. It will also provide liability coverage should someone be injured on your property. Another thing renters insurance will cover is damage you cause to the landlord's property (say, if one of your party guests breaks a window). You could be held responsible for injury to another person or for damage to another person's property if
an incident occurred within your rented residence, or elsewhere. Renters insurance can help protect you in case of a liability lawsuit against you.

Renter's insurance has additional benefits that might not immediately come to mind. For example, if you own a waterbed, a waterbed liability provision is standard in most policies, according to Mike Binns, personal lines underwriting manager for Farmers Insurance Co. If your waterbed bursts, you will be covered for the water damage.

Most companies offer a discount for having "protective devices," including smoke and fire detectors, burglar alarms and fire extinguishers. Some companies may offer a discount to policyholders who are over 55 and retired. Other companies may offer a discount if you get a combined auto-renter's policy.

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