Do I Need Renter’s Insurance?

By: Spencer Kilpatrick 

Licensed Insurance Agent 

For most Americans, getting to the financial point of home ownership is a prerequisite to starting a family. In growing communities like Georgetown, finding the home of your dreams (which you can afford) can be a difficult search.  With onsite gyms,laundry, entertainment and even babysitting services all within one complex, some couples are opting out of home ownership altogether. With less of a financial responsibility, renting remains a safer option for many. While the landlord is  responsible for upkeep, the tenant does remain liable for what goes on inside the space that they actually rent. So what will a renter’s policy cover?

Picture this, A main water line breaks in the ceiling of your apartment. Your landlord will be responsible for fixing the water leak but is not responsible for replacing your possessions inside your apartment that are damaged. While this may not seem fair, you remain responsible for protecting your personal possessions. Even in the event of a natural disaster or fire, a landlord’s insurance policy will cover his or her building, but the policy does not provide coverage for the property of their tenants.

Renter’s insurance is one way to ensure your family’s assets are protected from the unexpected circumstances of renting. Renter’s insurance provides two major coverages; personal property and personal liability. You will select a limit, which should exceed the total value of all your possessions, including electronics, appliances, clothing and jewelry. Your insurance company will pay you directly if they are stolen or damaged in a fire. 

The second part of the policy is designed to cover your liability. One example of the way you could use this coverage would be to pay for injuries to your neighbor if your dog bit them. Your insurance company would cover the damages up to the limit you selected, which often is in increments of $100,000.

Simply put, you are leaving yourself exposed if you choose to rent without insurance. Most policies can be purchased for $30 dollars or less a month and most companies will offer a discount for bundling Auto and Renters insurance.