Renters Insurance: Why You Need It & What’s Included

Myles Trempe - Producer

Consumers need to understand what their renters insurance policy covers and does not cover. Many assume that if something happens to the building, it’s the responsibility of the landlord to protect their property. This is generally not the case and the exact reason renters need personal coverage.

What Renters Insurance Covers 

Renters insurance covers most specifically your personal property (your belongings) and your personal liability. Consumers should take inventory of their belongings to determine the total value if a loss took everything. Talk with an insurance agent who can explain if those contents are covered on replacement cost or actual cash value. Actual cash value policies are generally less expensive, but your personal property is depreciated, therefore, leaving you unable to replace some items.

Renters Personal Liability Exposures

Be aware of your personal liability exposures and talk with your agent regarding which limit of liability should be on the policy. Many policies have exclusions to personal liability as well; review those exclusions with your agent to make certain you have coverage if the claim arises. For example, certain dog breeds are excluded for liability if a dog bite occurs. If you have a dog or plan to purchase one for your apartment, make that call to your agent.

What’s Excluded in a Renters Policy

Renters should also be aware of what is excluded in the policy. Floods and earthquakes are not covered by renters insurance. Depending on where you live, these are two coverages that you may want to have, even though they are an additional cost. 

Why Talking to a Local Insurance Agent is Important

A first-time buyer, unless well-versed in renters insurance, should have an agent or broker explain the complexities of a policy, rather than using an online quoting tool. These tools are only as good as the information provided and often don't provide a complete quote for coverage that will actually be needed. This would leave many renters underinsured in the event of a loss.

It’s best to talk with an insurance agent who can help advise on policy language, coverage offerings, exclusions and financial information pertaining to the insurance company they may be working with. Most renters insurance policies offer similar coverages, and an agent can speak on firsthand knowledge of which coverages may best fit the consumer’s situation and budget.

 Questions about renters insurance? Contact Wallace & Turner at (937) 324-8492 in Springfield, (937) 652-8492 in Urbana, or info@wtins.com.