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We are finding that more and more apartment complexes and home management companies are asking their renters or tenant to have a Renters Insurance Policy. We are always asked the question: “Why? Doesn’t my complex have insurance?”

We have some simplified answers for you.

“Doesn’t the person who owns the home I am renting have insurance?” Or: “Doesn’t my apartment complex have insurance?”

Answer: Yes.  Traditionally the homeowner and or apartment complex has insurance to cover their interests.  Their interests are the structure(s) and outside common areas (applies mostly to apartment complexes).  They do not carry coverage for your personal property. Nor do they carry coverage if someone was to get hurt inside the area that you are renting from them.

Property Example: The home that you are renting or the apartment building you live in catches on fire. The home or building burns to the ground. The homeowner or apartment building owners have insurance to rebuild the home or apartment building. Yep – that is it. They do not pay you for your personal losses; they do not have insurance coverage for your personal items. That means to you: all of your furniture, clothes, kitchen items, bathroom items, jewelry, photos, television, etc. are not going to be replaced by them. They owe you nothing.

Personal Injury Example: You have switched cable companies and the cable man needs to come into your home to provide the new service you just signed up for.  He happens to trip on the side walk before entering your apartment. He will probably sue your landlord. But if he happens to take a swan dive over your poorly positioned coffee table inside the home you are renting or apartment - he will sue you. The liability is yours.

“What does a Renters or Tenant’s Insurance Policy cover?”

Property Coverage: Tenant's insurance traditionally covers your personal property within a home or apartment against the same types of loss covered by homeowners insurance - fire, theft, vandalism, and water damage (but not flood damage and probably not earthquake damage either).  Look around your home or apartment, everything you have worked so hard to purchase, should be covered.

Personal Injury Coverage: It also protects your interests should someone have an accident within your dwelling unit for which you might be held liable.  So, when the cable man gets hurt swan

We are finding that more and more apartment complexes and home management companies are asking their renters or tenant to have a Renters Insurance Policy. We are always asked the question: “Why? Doesn’t my complex have insurance?”

We have some simplified answers for you.

“Doesn’t the person who owns the home I am renting have insurance?” Or: “Doesn’t my apartment complex have insurance?”

Answer: Yes.  Traditionally the homeowner and or apartment complex has insurance to cover their interests.  Their interests are the structure(s) and outside common areas (applies mostly to apartment complexes).  They do not carry coverage for your personal property. Nor do they carry coverage if someone was to get hurt inside the area that you are renting from them.

Property Example: The home that you are renting or the apartment building you live in catches on fire. The home or building burns to the ground. The homeowner or apartment building owners have insurance to rebuild the home or apartment building. Yep – that is it. They do not pay you for your personal losses; they do not have insurance coverage for your personal items. That means to you: all of your furniture, clothes, kitchen items, bathroom items, jewelry, photos, television, etc. are not going to be replaced by them. They owe you nothing.

Personal Injury Example: You have switched cable companies and the cable man needs to come into your home to provide the new service you just signed up for.  He happens to trip on the side walk before entering your apartment. He will probably sue your landlord. But if he happens to take a swan dive over your poorly positioned coffee table inside the home you are renting or apartment - he will sue you. The liability is yours.

“What does a Renters or Tenant’s Insurance Policy cover?”

Property Coverage: Tenant's insurance traditionally covers your personal property within a home or apartment against the same types of loss covered by homeowners insurance - fire, theft, vandalism, and water damage (but not flood damage and probably not earthquake damage either).  Look around your home or apartment, everything you have worked so hard to purchase, should be covered.

Personal Injury Coverage: It also protects your interests should someone have an accident within your dwelling unit for which you might be held liable.  So, when the cable man gets hurt swan diving over your coffee table, you should be covered.

Be aware, however, that expensive jewelry, coin or stamp collections, high end art, antiques, sterling silver, oriental rugs, or really expensive electronics may not be included in the coverage without a rider that specifically covers such items (named coverage) and these can be expensive. It is also possible to buy earthquake or flood coverage but again at a premium price.

“What to do when obtaining a Renters or Tenant’s Insurance Policy?”

Make a list of what you own beyond the ordinary and go over the list item by item with an experienced insurance agent. The policy prices will vary depending on whether belongings are to be valued at replacement cost or at actual cash value. The difference is critical at a time of loss. If a five-year-old stereo is stolen, a replacement cost policy will pay an amount sufficient to replace the item with a comparable unit; an actual cash value policy will depreciate the item a percentage amount for every year since it was purchased, often as much as 50 percent. While some recovery is better than none, talk with us about the cost of a full replacement cost policy.

diving over your coffee table, you should be covered.

 

Be aware, however, that expensive jewelry, coin or stamp collections, high end art, antiques, sterling silver, oriental rugs, or really expensive electronics may not be included in the coverage without a rider that specifically covers such items (named coverage) and these can be expensive. It is also possible to buy earthquake or flood coverage but again at a premium price.

“What to do when obtaining a Renters or Tenant’s Insurance Policy?”

Make a list of what you own beyond the ordinary and go over the list item by item with an experienced insurance agent. The policy prices will vary depending on whether belongings are to be valued at replacement cost or at actual cash value. The difference is critical at a time of loss. If a five-year-old stereo is stolen, a replacement cost policy will pay an amount sufficient to replace the item with a comparable unit; an actual cash value policy will depreciate the item a percentage amount for every year since it was purchased, often as much as 50 percent. While some recovery is better than none, talk with us about the cost of a full replacement cost policy.

We are finding that more and more apartment complexes and home management companies are asking their renters or tenant to have a Renters Insurance Policy. We are always asked the question: “Why? Doesn’t my complex have insurance?”

 

We have some simplified answers for you.

“Doesn’t the person who owns the home I am renting have insurance?” Or: “Doesn’t my apartment complex have insurance?”

Answer: Yes.  Traditionally the homeowner and or apartment complex has insurance to cover their interests.  Their interests are the structure(s) and outside common areas (applies mostly to apartment complexes).  They do not carry coverage for your personal property. Nor do they carry coverage if someone was to get hurt inside the area that you are renting from them.

Property Example: The home that you are renting or the apartment building you live in catches on fire. The home or building burns to the ground. The homeowner or apartment building owners have insurance to rebuild the home or apartment building. Yep – that is it. They do not pay you for your personal losses; they do not have insurance coverage for your personal items. That means to you: all of your furniture, clothes, kitchen items, bathroom items, jewelry, photos, television, etc. are not going to be replaced by them. They owe you nothing.

Personal Injury Example: You have switched cable companies and the cable man needs to come into your home to provide the new service you just signed up for.  He happens to trip on the side walk before entering your apartment. He will probably sue your landlord. But if he happens to take a swan dive over your poorly positioned coffee table inside the home you are renting or apartment - he will sue you. The liability is yours.

“What does a Renters or Tenant’s Insurance Policy cover?”

Property Coverage: Tenant's insurance traditionally covers your personal property within a home or apartment against the same types of loss covered by homeowners insurance - fire, theft, vandalism, and water damage (but not flood damage and probably not earthquake damage either).  Look around your home or apartment, everything you have worked so hard to purchase, should be covered.

Personal Injury Coverage: It also protects your interests should someone have an accident within your dwelling unit for which you might be held liable.  So, when the cable man gets hurt swan diving over your coffee table, you should be covered.

Be aware, however, that expensive jewelry, coin or stamp collections, high end art, antiques, sterling silver, oriental rugs, or really expensive electronics may not be included in the coverage without a rider that specifically covers such items (named coverage) and these can be expensive. It is also possible to buy earthquake or flood coverage but again at a premium price.

“What to do when obtaining a Renters or Tenant’s Insurance Policy?”

Make a list of what you own beyond the ordinary and go over the list item by item with an experienced insurance agent. The policy prices will vary depending on whether belongings are to be valued at replacement cost or at actual cash value. The difference is critical at a time of loss. If a five-year-old stereo is stolen, a replacement cost policy will pay an amount sufficient to replace the item with a comparable unit; an actual cash value policy will depreciate the item a percentage amount for every year since it was purchased, often as much as 50 percent. While some recovery is better than none, talk with us about the cost of a full replacement cost policy.

See our previous blog on how to make that list! Or ask your agent today. 

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