Understanding Renter’s Insurance

Renting is back in style. After a long trend of home ownership in the United States, an increasing number of American’s are renting. According a 2013 resource released by the Joint Center for Housing Studies of Harvard University, renting is steadily increasing. “From 31 percent in 2004, the renter share of all US households climbed to 35 percent in 2012, bringing the total number to 43 million by early 2013” says the report. Inside each one of the rented 43 million homes are the belongings and possessions of the family or individual. If these are damaged, they are not covered: the property is insured by the owner, but the insurance of personal belongings is up to the renter.

Understanding Renter’s Insurance

Renter’s insurance coverage is designed to protect you and your personal property from damages. What you actually rent is probably the actual apartment or house, however, most of the stuff inside is probably owned by you. Your landlord’s insurance policy should fully cover the building structure itself. This leaves your valuables unprotected unless you step in. That’s where renter’s insurance comes in, acting like a homeowners insurance, following a similar principle, though tailored for renters.

Do You Need Renter’s Insurance?

Some may not think they have enough in their small apartment to warrant insurance. However, on average, a renter owns roughly $20,000 in personal property. An apartment or other rented space is actually just as likely to be subject to a burglary as a home that is owned by the individual. Another advantage is that renter’s coverage protects your property when it is outside your apartment. Your belongings could be in your backpack on a park bench or in your Vegas hotel room. They are protected anywhere in the world.

What Does Renter’s Insurance Cover?

Some renter’s policies will differ, but here are the general things it will cover:

Personal property: this will help you replace your belongings after an event like a fire or burglary.

Personal liability: if someone is hurt in your apartment or you accidentally injure someone, renters insurance will provide limited liability coverage for legal costs if you are sued.

Medical payments: if a guest is injured on your property, your renter’s policy can help cover medical expenses (to a limit).

Property damage to others: if you accidentally damage someone else’s belongings or property, your renter’s policy can help cover costs associated with repairing or replacing it.

Additional living expenses: if a covered incident occurs which causes you to be unable to remain in your place, renter’s insurance can help cover lodging expenses.

What Will Renter’s Insurance Protect You From:

Here is what Renter’s insurance can protect your possessions from:

• Theft
• Vandalism
• Explosions
• Fire or lightning
• Smoke, if accidental and sudden
• Water or steam, if accidently and sudden
• Falling objects
• Windstorm or hail
• Loss of use

One of the attractions of renting is the simplified lifestyle. However, there are a few things you need to do to protect yourself and your belongings. Purchasing the correct insurance is one of those things. If you would like to learn more about renter’s insurance, please contact us at HK Insurance. We can help you find the right renter’s insurance policy for you and your family and answer any questions you may have. Also, by purchasing renter’s insurance, you can save money on your auto insurance. Contact us to learn more about bundling your renter’s and auto insurance to save you money.