If you are renting a home or apartment, it’s possible that renter's insurance may not have crossed your mind, and may even be the least of your worries. Insuring a home that you’ve personally purchased makes sense to most individuals, but isn't a rental property the landlord's responsibility?
The truth is, you will need renter's insurance if your landlord requires it. Insurance protects property owners in the unfortunate event of theft, loss, or damages. However, most do not require it—therefore tenants often forego buying a policy altogether.
While it’s not always required, anyone renting a residence in the long-term is strongly encouraged to purchase a renter's insurance policy. It’s a valuable tool for reducing the financial impact of unexpected events that damage personal belongings or when circumstances leave anyone legally liable.
A renter's insurance policy helps to guard against losses in case of theft, fire, or other damage. It covers personal property damage, personal liability, loss of use, and sometimes provides medical coverage. If you accidentally break something in your apartment that causes damage to your neighbors' belongings, for example, renter's insurance could help pay for the repairs.
A renter’s insurance policy also covers liability, meaning it will pay at least some legal fees for injury or damage due to negligence. For example, if someone gets injured in your rental home and decides to file a lawsuit against you, a renter's insurance policy may finance a portion of the legal costs, as well as a reasonable amount of medical expenses, too. Such policies can also help to support additional living expenses if you get displaced because of rental property damages which leave your space uninhabitable.
Renter's insurance coverage applies outside the residence, as well. If you misplace your wristwatch while traveling, the insurance might assist in its replacement. Also, if you are home-sharing for short-term rentals, renter's insurance offers protection if something happens to your guest or their belongings.
The answer to this question will vary widely from person to person. First, you'll need to make a list of everything you own and each individual item's values. Take a photo or video of your home and your most valuable belongings. Include serial numbers of electronics and other important devices. Also, identify the most expensive things you'll need additional coverage for, like jewelry or other valuables. When you have completed your inventory, tally it all up—the valuation of your items will affect the precise policy you decide to purchase. Finally, you can choose either an actual cash value (ACV) or a replacement cost value (RCV) policy.
Another major decision lies in setting limits between your personal property coverage and your liability coverage, as these are the main drivers of the cost of a policy. Get enough personal property coverage to protect your personal belongings' value and consider a reasonable amount in personal liability coverage.
The simple answer is: “absolutely.” A renter's insurance policy can give you peace of mind knowing that your personal belongings are safeguarded, you have liability protection, and you have a safety net if something ever happens that will make your home uninhabitable.
Take the proper steps to protect your and your family’s most valuable possessions. At Omega Insurance Group, we understand that deciding on the right policy can be tricky. If you’re still uncertain about renter’s insurance policies and their details, please don’t hesitate to reach out and contact us with questions or for a free quote. Let us help make this process as simple as possible—we’ll sit down together and come up with your personalized plan before moving forward.