Why is the owner asking me if I have Renter's Insurance?

Home Builder with Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 CSL#642819


Renter’s Insurance – Who Needs It?


As a General Contractor with a crew who works in many apartment communities in the Sacramento area, we see many tenants who wish that they had gotten renter’s insurance. Fire, smoke, and water damage are apartment fire in Sacramentousually the events that we think of when we talk about renter’s insurance. Many policies cover loss from theft, liability, and more be sure to ask your agent what is and is not included in your coverage. It is important to note that the tenant is not usually covered under the property owner’s policy.

What does Renter’s Insurance Cover?

You will be protected if your apartment burns down, or the upstairs tenants water heater leaks and drains into you unit, or if you are robbed of those expensive gadgets that you possess. Many policies cover medical expenses if someone is hurt inside your property and liability insurance can help protect your assets too. If the loss forces you to move out of the unit, the coverage includes increased living expenses. If you live in a flood plain, flooding will not be covered. Should you buy renter’s insurance?

How much coverage do I need?

This will be determined by the value of the things that you have. If you have a lot of expensive things, (jewelry, electronics, furnishing) you can expect to have a larger policy. The cost will vary in proportion to the coverage. Be sure to ask about the limitation of the policy. Many policies limit the amount of coverage on electronics and assets used for working at home may require separate coverage.

What does Renter’s Insurance cost?

It can be as low as $100 a year depending on the amount covered, and where you live. If you have expensive things, your costs will be higher. High risk areas can boost the premium as well. If you are considering whether or not to get insurance, remember that a fire caused by a smoker who falls asleep with a burning cigarette next door could cost you everything but the cloths on your back. Check out this Renter insurance calculator.

Three underserved groups – Are you one of these?

There are three groups that seem to be lacking insurance coverage.

College student – Fresh off to school, not really thinking about losing their belongings, college students are finding that theft, vandalism, and fire can quickly take away their possessions.

Elderly – This group may have been long time home owners but the loss of a loved one has forced them to rent a more affordable home or apartment. The idea of renter’s insurance is being overlooked.

Those transitioning from foreclosure to rental – This group are rather large; many have lost their home to foreclosure and are now renting for the first time in a long time. As homeowners, they probably had homeowners insurance but just haven’t considered getting renter’s insurance.

If you are a renter, consider finding a rental insurance agent near you. The cost really isn’t all that great, and will protect you in the event of a loss. Be sure to ask a lot of questions about the policy; what is included, exceptions and exclusions, and cost all need to be talk about before signing the agreement.


 Original post: http://actvra.in/nLg

Comments (78)

Hella Mitschke Rothwell
(831) 626-4000 - Honolulu, HI
Hawaii & California Real Estate Broker
We have a lot of mobile homes up here in a park where they don't own the land where many elderly live. That's a whole different kind of insurance. Many are not insured and that can be heartbreaking when they lose it all.
Dec 14, 2012 02:08 AM
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

One of my tenants had all of their TV, sound system, and game systems fried out but an electric surge earlier this year.  No renters insurance made it very expensive for them .

Dec 14, 2012 03:19 AM
Doreen McPherson
Homesmart ~ Scottsdale ~ Tempe - Tempe, AZ
Phoenix Arizona Real Estate ~

I had renters insurance back in the 80's, then bought a home, now I am back in an apartment and wouldn't think of not having insurance.  The company that owns these apartments requires renters insurance and insists on being listed as an interested party.  

Dec 14, 2012 03:55 AM
Cindy Williams

Excellent post. As a property manager I tell my renters that renter insurance is so affordable you really cannot afford to be without it.

Dec 14, 2012 04:06 AM
Lisa Lowe
RE\MAX Omni Consultants - Scottsdale, AZ
Lisa Lowe Realtor

Great Information! Thank you for sharing. 

Dec 14, 2012 05:33 AM
Suzi Sandore
RealtyONEGroup - San Diego, CA
North County San Diego Homes

Tom, renter's insurance is so inexpensive it makes no sense not to have it. It costs less than any of the electronics you need to cover. 

Dec 14, 2012 12:03 PM
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Tom, this post is valuable tool for all those who rent.  Renter's insurance is worth the small mount it costs for piece of mind.  In Dallas, many landlords are requiring tenants to carry renter's insurance and liability insurance.

Dec 14, 2012 02:04 PM
Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life

Excellent article, Tom.  Kudos for a well written piece to get the word out there about one of the most affordable types of insurance.

Dec 14, 2012 09:30 PM
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Hi Tom great post.  We think often tenants do not know they need insurance.

Dec 15, 2012 12:29 AM
Kate Akerly
Kaminsky Group - Manhattan Beach, CA
Manhattan Beach Residential Sales

My wife and I were renting in a historic building in NYC a few years back.  One night, she slipped off her wedding ring only to see it fall, bounce across the floorboards, and slide in between them.  We worked for days to try to recover it, but ultimately filed a claim on our renter's policy.  They sent out a contractor who assessed the work and possibility of recovering the ring.  

The adjustor ultimately gave us the choice - attempt to recover it at the insurance company's expense or receive a check.  If the attempted recovery failed, we would not have been compensated otherwise, so we chose the check to replace the ring.  It was over $15,000 and they paid it without question.  Yet another reason to have renter's insurance!

By the way, some policies also cover things like lost or stolen personal property even if the incident occurs outside the home.  It's great for laptops, jewelry, etc. 

Dec 17, 2012 01:01 AM
Tom Johnson
Your Castle Real Estate, Inc - Aurora, CO
Military VA Expert - MBA, MRP, CRS - 303-856-6185

Last year a house went up in flames just 6 houses from me.  Imagine laying in bed with a glow of intense light coming into your bedroom window at midnight and the sound of sirens close by.  The house was completly destroyed along with all the family possessions.  The bright side to all this is the family made it out of the home unharmed however, I later found out they were renting and had no renters insurance.  They lost everything.  This is a tragic story that I share to emphasize the importance of renters insurance for ALL renters.  Great post Tom..  

Dec 17, 2012 02:26 AM
Rob Renk
Center Street Lending - McKinney, TX
AE | Fast Fix/Flip Loans for Residential Investors

Great post on Renter's Insurance.  Most people don't think about it until it's too late. They need this insurance to cover all of their things.


Dec 18, 2012 01:15 AM
Deleted Account
Fort Myers, FL

I agree it is a necessity and excellent advice, but renter's insurance can be tricky if you are not careful.  I live in a condo, which is about half way in between homeowner's and renter's insurance.  My advice is have the insurance agent at your home when you have it written up and ask if certain things are covered.  Some policies don't cover jewelry or it is only for a limited amount.  When purchasing a policy, find out if it covers replacement value or depreciated value.  They may also require proof of purchase price on some items.  Bottom line is ask questions and rad the fine print.

Dec 18, 2012 11:28 AM
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Great post, Tom. Some condo buyers asked this question - and I said - just do it! Now I know why...Thanks for sharing.

Dec 21, 2012 02:34 PM
Pat & Steve Pribisko
Keller Williams Greater Cleveland West - Westlake, OH

Tom, good blog.  Not only is renter's insurance needed, but people who own vacant homes need vacant home insurance.

Dec 22, 2012 07:14 AM
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

Praful - This may be the best advice for many renters.


Pat and Steve - You bring up a whole new topic that should be addressed too! Thanks for the feedback.

Dec 22, 2012 10:44 PM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

As a former insurance adjuster I can only agree with everything you had to say.  Most people do not realize what it covers and why the need it.

Dec 27, 2012 03:17 AM
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

I would certainly recommend that someone talk to an agent about their insurance needs first Gene.

Dec 27, 2012 01:37 PM
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

My daughter is living off campus this year.  I never would have considered renters insurance for her.  Thank you!

Jun 21, 2014 09:45 PM
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

It is something that many are happy to have had when they needed it Lise.

Jun 22, 2014 01:39 PM