Renters Insurance Frequently Asked Questions

Why do I need renters insurance, doesn’t my landlord’s insurance cover everything?

In most cases, your landlord’s insurance will not provide the coverage you need for personal property and if you are sued for liability.  The following are 3 basic areas of renters insurance:

  • Personal Property – Renters insurance provides coverage to your personal property due to fire, vandalism, storms, and if they’re stolen.
  • Personal Liability – Your policy provides coverage to you and your family members for what you may be legally obligated to pay because of bodily injury or property damage caused to another person.
  • Loss-of-use – Your policy can provide coverage for your hotel and restaurant bills if your residence is being repaired due to damages by a fire, vandalism, or storms and you need temporary living quarters.

Replacement Cost vs. Actual Cash Value

Replacement Cost on your personal property is a little more expensive, but usually worth it.  Actual Cash Value will replace your property at its current market value, factoring in depreciation, which can be lower than the Replacement Cost.

My Roommate has insurance, do I still need it?

If your roommate is not a relative, you will each need a separate renters policy to cover your own personal property and provide liability coverage for your own actions.  Standard renters policies will cover only yourself and your relatives that live with you.

I don’t own anything valuable, why do I need Renters Insurance?

Let’s think about this for a moment.  Do you own a computer, television, DVD player, DVD’s, CD’s, digital camera, wii, iPod, how about your jewelry, clothing, sporting equipment, books, furniture, and appliances?  What would happen if all of these things were destroyed?  It probably wouldn’t be easy to replace all of these things.  While a standard renters policy covers most of these things, items such as computers, jewelry, furs, guns, and antiques may be only have limited coverage.  It’s important to ask your agent how much coverage you have and if you should schedule these items separately to ensure that you do have proper coverage. Learn more about Scheduled Personal Property.