Renter’s Insurance Explained: What You Need to Know

Gallina Management, Inc. strongly recommends that our tenants carry Renter’s Insurance. Ask yourself this: If all your clothes, the appliances you own, your TV, stereo, jewelry, computer and that collection of super hero comics were destroyed in a fire, could you replace them, immediately, out of pocket? If you said no, you need renter’s insurance. Of course, you can always count on part of your landlord’s insurance policy, right? Well, no. Many renters are under the impression that their property management company’s, landlord or the landlord’s insurance policy covers their personal belongings as well. Unfortunately, that’s not the case, and they often don’t find that out until the worst possible time, such as, after a disaster or a robbery. Your property management company’s landlord or the landlord’s policy doesn’t cover anything that’s yours.  To have the loss paid by your landlord or the property management company, the loss would have to be caused by negligence on the part of your landlord or property management company, and then you would still have to prove it in court. Renter’s insurance is a policy for renters which can cover the replacement value of your possessions. Though your landlord carries insurance on the building you live in, the landlord’s insurance does not cover your personal belongings such as: clothing, furniture, stereo, computer, other electronic equipment, and any other personal possessions within your apartment home or in storage and garage areas. In the event of a loss due to a fire, an explosion, water damage or vandalism, to name a few, you would face repair or replacement costs for damage to your belongings.  In addition, a renter’s policy may also provide protection for the loss of use of your apartment home and the cost of temporary housing. Renter’s insurance provides the security of knowing that if you lost everything today, you wouldn’t be forced to start from scratch. Renter’s insurance can even cover you for personal possessions that don’t happen to be in the apartment at the time of the loss. If that friendly tour guide on your dream vacation happens to find their way back to your hotel and makes off with a suitcase full of your stuff, you don’t have to just suffer the loss. Renter’s insurance may also include liability coverage to protect you if someone were to get hurt at your residence, for example, when your best friend trips on your throw rug and breaks an arm.  Also, renter’s insurance may cover losses to the building and other tenants’ belongings should you unintentionally cause a loss. For example, renter’s insurance may cover your liability for some or all expenses if you were to accidentally run your bathtub over and cause water damage to the building, hallway carpet, and your downstairs neighbor’s personal belongings. You may be surprised to learn that renter’s insurance is not that expensive.  Typically to insure the examples previously described, the premiums can be very reasonable. You can lower that cost even further by getting a policy with roommates, increasing your deductible or getting a discount for having multiple policies with the same carrier (for example, renter’s and auto insurance). It’s certainly cheaper than replacing all your possessions after a disaster. In addition, some insurance companies offer discounts to their customers for quality construction, electronic fire alarm systems, sprinkler systems and intruder alarm systems. You are encouraged to inquire about these additional discounts with your insurance representative.