Why You Need Renters Insurance

“Why do I need renters insurance? If the place burns down, I’ll just move?” We often get this answer from clients when we approach them regarding obtaining renters insurance. Unfortunately, the ramifications run a lot deeper than just your place to live.

We’ve all heard about the recent devastation caused by earthquakes, tornadoes, floods, hurricanes and fires that have swept the nation coast-to-coast.  Forces of nature are not to be reckoned with and as a tenant, you should be proactive in protecting yourself financially in the off-chance you drastically lose the contents and personal belongings, even if you don’t have home insurance. Nevada, where many of our clients live, has very inexpensive rental insurance policies.

Often, tenants have a false sense of security thinking that they will automatically be covered if something were to happen to the home they are renting from a landlord or property manager. It is not uncommon that lease agreements are written with the standard verbiage of something along the lines of “tenant shall hold the landlord/property manager harmless from any and all liability.” What this means is that the landlord/property manager insurance policy covers the structure only, not the tenant’s personal contents.

Everyone should make a list of their belongings and their values. You might be surprised what the total is. The expense and inconvenience of replacing all of your clothes, jewelry, food, furniture, TV, computers, your smartphone, and all of the supplies it takes just to live each day will sky rocket if you do not have renters insurance. You could find yourself spending upwards of $50,000-plus to replace everything plus finding a new rental.

Other considerations for obtaining a tenant insurance policy should be for issues related to vandalism or theft, liability reasons (example: slips and falls), or property defects causing destruction of personal property.  In the case of a property defect, it is typical that the landlord’s insurance policy will cover the structure only, so if the roof on your home leaks, the landlord will usually repair or replace the roof.  However, if the roof leaks down on your computer and ruins your expensive equipment, the landlord’s policy will typically only cover the roof, not your personal property because that would be covered by your renter’s insurance policy.

If you are interested in obtaining a renters quote, please call Menath Insurance at our toll free number, 888-304-7353.