Many questions need answering surrounding renters’ insurance, and today, we’re filling you in on everything you need to know.
Insurance is one of the best investments you can make and plays a massive role in financial planning and stability. It provides financial security and ensures that you can face various unforeseeable situations that may come up in life. Insurance for renters is no different.
This type of insurance is a safety net that brings peace of mind. Individuals or families that rent their home or apartment, similarly to homeowners, should seriously consider protecting themselves from the unknown.
But that doesn’t mean you don’t have questions surrounding the topic, which is why we’re answering many of your frequently asked questions.
Continue reading below to learn more.
Q: What is Renters’ Insurance?
A: Renters’ insurance, also called tenants’ insurance, is a policy that provides similar perks to homeowners insurance. An insurance policy as a renter typically covers your personal belongings and possessions, liability, and additional living expenses (ALE) if the property you rent becomes unlivable. However, it does not cover the structure or dwelling itself; your landlord’s insurance covers that.
Q: Do I Actually Need Renters’ Insurance?
A: Many landlords require their renters to purchase tenants’ insurance before they lease their property. In other instances, the choice of buying insurance is left up to the renter.
A lack of insurance can be a bit of a risk or gamble. If the property you lease is broken into and your belongings are stolen, or a fire destroys your possessions, and you don’t have tenants’ insurance, you are responsible for footing the bill to replace those items. Moreover, if your apartment becomes unlivable, you must pay for other living arrangements.
An insurance policy as a renter will protect you from these unfortunate situations. So the answer to this question depends on who you’re asking. We, along with many others, believe every renter should invest in insurance.
Q: Does Renters’ Insurance Cover My Car?
A: No. Tenants’ insurance does not cover automobiles, whether you own (or have rented) them or not. You will need a separate car insurance policy to legally operate and protect your vehicle.
Q: What About My Bicycle?
A: Your bike and other sports or recreational equipment are covered by most policies. There are also other add-on policies you can purchase for costly equipment.
Q: My Landlord Has Homeowners Insurance. Do I Still Need Renters’ Insurance?
A: If you want your possessions to be protected and have ALE and liability coverage, then yes! Your landlord’s homeowners insurance will do nothing to protect you. Your landlord’s policy will not replace your belongings or pay for your living expenses while the property is being repaired.
Their insurance covers the structure of their property and a few other things, but not you or your belongings in the event of theft, various disasters, and other unfortunate events. Moreover, your tenants’ insurance policy will not cover your landlord’s property. Investing in a tenant insurance policy is the only way to protect yourself financially against disasters and other circumstances.
Q: What Types of Events Does Renters’ Insurance Cover?
A: The answer to this question entirely depends on your specific policy. However, tenants’ insurance will typically cover your rental when the following event occurs:
- Fire and smoke damage
- Lightning, windstorm, and hail damage
- The weight of snow, sleet, and ice
- Riots and vandalism
- Falling objects
- Damage by aircraft or vehicle (not your own)
- Damage from steam-heating, water-heating appliances, and systems
- Leakage or overflow of water or steam
- Freezing of plumbing
- and more.
Q: Does Renters’ Insurance Cover Floods or Earthquakes?
A: No. Most tenants’ insurance policies do not cover earthquakes or floods. You’ll want to chat with your insurance provider about getting coverage and adding policies to get this type of coverage.
Q: I am a Student. Does My Parents’ Insurance Cover Me?
A: If you are attending college, live in a dorm, and are still considered part of your parent’s household, their renters’ or homeowners’ insurance should provide coverage. However, if you live off-campus, you’ll likely need your own policy.
Q: Can My Roommate or Domestic Partner and I Purchase a Renters’ Insurance Policy Together?
A: Rules and regulations vary from state to state, insurance company to company, and policy to policy. You’ll need to learn about these regulations where you live. Some companies allow unmarried couples (domestic partners) who live together to buy joint coverage but are not typically automatically insured. Make sure to talk with your insurance provider to get all of your questions answered.
Q: Are Items I’ve Rented or Borrowed Covered by Renters’ Insurance?
A: Items “in your possession” are typically covered under standard policies, whether you bought them, were gifted them, or have borrowed them.
Q: What If My Belongings Were Stolen Away from Home?
A: Most tenant policies have “off-premises” coverage. This means that possessions outside your rented property are also covered against the same perils. For example, a bike stolen at school or items taken from your car are typically covered.
Q: Are All Renters’ Insurance Policies the Same?
A: No. Policies can vary from one to the next, making it extremely important to talk to your insurance agent to ensure all of your questions are answered. Take the time to thoroughly understand your policy and ensure there are no question marks.
Q: I Need Renters’ Insurance. Where is the Best Place to Get a Policy?
A: Bear River Mutual Insurance!
Contact Bear River Mutual Insurance Today!
When renting a property, it is essential to protect your personal belongings with renters’ insurance. For the best rates and coverage, contact the professionals at Bear River Mutual Insurance. We are eager to help you find a policy that provides the right balance of value and protection for you and the things that matter most. We serve Salt Lake City, Orem, Provo, and the surrounding cities in Utah.
If you have more questions surrounding tenants’ insurance or are looking for another type of insurance such as car, health, business, or homeowners, contact the knowledgeable team at Bear River Mutual Insurance today!