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Is Renters Insurance a Good Idea?

By
Real Estate Broker/Owner with Educators Realty

Renters insurance is a crucial investment for those leasing residential properties, offering protection and peace of mind in unexpected situations. Here's a brief overview:

Coverage Types:

  • Personal Property: Protects belongings like furniture, electronics, and clothing from perils such as fire, theft, or vandalism.
  • Liability: Covers injuries on your rental property and potential damage to others' property caused by you or your pets.

Note: Standard policies may not cover flood damage. Consider additional flood insurance, especially in flood-prone areas.

Perils Covered:

Renters insurance typically covers fire, theft, vandalism, windstorm, and specific water damage. However, coverage details may vary.

Additional Living Expenses (ALE):

If your rental becomes uninhabitable due to covered perils, renters insurance may cover living expenses like hotel bills and meals.

Deductibles:

Similar to other insurance, renters insurance comes with a deductible – the amount you pay before coverage kicks in.

Policy Limits:

Each coverage type has a limit, ensuring your coverage is sufficient for potential losses.

Exclusions:

Review policy exclusions carefully, as some events or property types may not be covered.  If you live in an area like Long Beach, NY, be aware that flooding is generally not covered.

Cost Factors:

The cost depends on location, coverage, deductible, and sometimes credit score. Consider bundling with other policies for potential cost savings.

Documentation:

Maintain an inventory of possessions with receipts and photos for claim purposes.

Shop Around:

Different providers offer varied options and prices. Compare quotes to find the best policy for your needs.

Landlord Coverage:

Renters insurance doesn't cover landlords; it's for the tenant's personal property and liability. Landlords insure the building structure and owned property.

Should I Purchase Renter's Insurance?

YES. At less than $1 a day, renters insurance is an affordable investment providing financial protection and peace of mind. Safeguard your belongings and mitigate liability risks while renting.

By Chris Robson, of Educators Realty.

A full version of this article can be found here.

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Show All Comments Sort:
Caroline Gerardo
Licensed in 20 states - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

Basic renters insurance is low cost but only covers $7500+/- 

Jan 24, 2024 11:36 AM
Christopher Robson

True, but for most renters in our area that is usually sufficient. 

Jan 24, 2024 01:35 PM
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

A Landlord should require a Tenant to get Renter's Insurance as long as it is lega to do so.

Jan 24, 2024 11:40 AM
Christopher Robson

Agree.  I advise all of my clients who own investment properties to require it.  

Jan 24, 2024 01:34 PM
Charles Ross - eXp Realty (Salina Group) | Broker
Salina Group - Salina, KS
Love To Help People

Christopher, your detailed guide on renters insurance provides essential knowledge for tenants, emphasizing the significance of coverage in various scenarios. Your dedication to educating renters is commendable. #RentersInsurance101 #RealEstateEducation 📚🏡

Jan 24, 2024 12:10 PM
George Souto
George Souto NMLS #65149 - Middletown, CT
Your Connecticut Mortgage Expert

Christopher Robson renters insurance is inexpensive, so in my opinion it is foolish not to get it.

Jan 24, 2024 02:20 PM
Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

Welcome to the Rain. Enjoyed your blog page, and I added you as a follower. I would love the follow back. Also, then we both get 50 points. Bill

Jan 25, 2024 04:43 AM