5 Reasons You Need Renter’s Insurance

If you lease a home or apartment, you may be considering working with a renters insurance broker.

Renters insurance is essential to renting, but a startling two-thirds of renters do not have rental insurance. This means that 66% of renters are living without protection and could be held liable in the event of a lawsuit.

There are many reasons why people leasing opt out of getting renters insurance, but these reasons are not often justified. It is commonly misconstrued that a renter does not need their own policy because they are covered under their landlord’s insurance. A landlord’s policy only protects the structure, no personal items (more on that below). Another reason is that a renter thinks they do not have that many assets, and a loss wouldn’t be that detrimental (more on that later, too).

Shockingly, the majority of renters think that renters insurance is expensive and not worth the investment. But today, we’re setting the record straight. We are here to give you and all renters five reasons why those leasing a house or apartment need to protect themselves with insurance.

Continue reading to learn more below.

What is renters insurance?

Before we dive into the topic “Why is renters insurance important,” let’s make sure we are on the same page and look at what renters insurance is. 

Renters insurance, also called tenants insurance or an HO-4 policy, is an insurance policy that covers a renter’s personal belongings and offers liability coverage when you live in a property that you do not own.

This type of insurance is similar to a homeowners policy because it covers many of the same events and scenarios, like fire damage or theft. However, it differs from a standard homeowners insurance policy because it does not cover the actual structure, just the renter’s belongings, making it much more affordable.

Why is renters insurance important: 5 reasons you need to know

If you’ve ever wondered, “Why is renters insurance important?” then you’re in the right place. Here are five reasons every renter needs an HO-4 policy:

1. Damage and loss protection — Renters can incur damage or loss at any moment for a wide range of reasons. Think about how much stuff you actually own. Many renters have a computer or laptop, furniture, TV and other electronics, bikes, clothing, and so much more. The average renter owns between $15,000 and $30,000 worth of personal property.
   If you lose your personal belongings in a fire and do not have renters insurance, any damaged, stolen, or destroyed items are lost and yours to cover and repurchase. However, if you do have tenants insurance and are affected by a covered event, your belongings are protected by your policy.
2. Meet landlord requirements — Many landlords out there require renters to invest in insurance for their own protection. Renting out a property comes with many hurdles and risks, one of those being liability.
   Requiring tenants to procure insurance in a lease benefits everyone, including the landlord, since it reduces their liability and prevents them from having to pay for damages. Tenants insurance also covers temporary housing costs, which helps the landlord determine who is reliable. It also makes it easier to accommodate renters with pets.
3. Liability purposes — Tenants insurance is not just about protecting your personal belongings. It’s also there to cover things that happen in and around the property you rent. You could be sued if a person is injured in or on your premises, but an HO-4 policy could help cover the costs of a lawsuit.
   This is also something your landlord’s homeowners insurance will cover. However, you should not rely on their policy since some property owners opt out of investing in insurance. Not having liability coverage could leave you high and dry and covering expensive lawyer fees.
4. Protection away from home — Did you know that your tenants insurance policy will also cover your personal belongings even when they are not in your rental property or on-site? If something is stolen while you are on vacation or even down the street at the local coffee shop, it could still be covered by your renters insurance.
   The standard tenants insurance policy will cover items stolen from storage units, vehicles, or while traveling.
5. It is surprisingly affordable — A lot of renters are under the misconception that renters insurance is a huge, costly investment. However, considering all that a tenants insurance policy covers, most renters who look into it learn that it is quite affordable to pay just over $150 each year for coverage.
   Your tenants insurance could be different depending on your location and the coverage types that you require, but most people pay less than $200 annually on their policy. If you think you might be paying too much, shopping around is important. Make sure to reach out to professionals like Bear River Mutual Insurance to compare costs and learn how you can save.

Need renters insurance? The professionals at Bear River Mutual Insurance are here to help.

If you need tenants insurance, Bear River Mutual Insurance has a renters insurance broker just for you. Even if you are not in the market for renters insurance, we have an experienced team of brokers to help you with home, business, car, and all other types of insurance you might need.

Protecting yourself as a renter is just as important as protecting yourself as a car, home, or business owner. Our knowledgeable and trusted team thoroughly understands this and is here to help you find the best rates and coverage for a policy that will give you and your loved ones the peace of mind you deserve.

Investing in tenants insurance is the best way for renters to ensure a financial safety net. That is why our skilled team is eager to help you find the ideal balance of value and protection for you and the things that matter most to you.

You can find us in Orem, Provo, and Salt Lake City. Contact Bear River Mutual Insurance to talk to a renters insurance broker today.