So, you are renting the roof over your head. Should you have a Renter’s Insurance policy? The answer is nearly always Yes! More and more rental agreements are requiring tenants to have Renters coverage – for very good reasons.
Your landlord has an insurance policy covering his building, but it only covers his interest in the building and its fixtures where you pay to live. You the renter get no coverage for your valuable stuff from the landlord’s policy.
Also, no coverage extends from the landlord’s insurance for your personal liability for accidents, damage to property or injuries that your guests may suffer. Should someone get injured during an accident at your rental home, renters insurance can help protect you in the event a liability lawsuit later develops where you are the defendant.
Here’s an example. Jen hosts a little dinner party and two of her guests become horribly sick, food poisoned from something served them that evening. Both end up in the hospital for several days in intensive care. Unable to work for some time during their recovery, the guests, now ex-friends, decide to sue Jen for their huge medical bills, pain and suffering and lost wages. Because she does not own a Renter’s policy, Jen then has to hire an attorney to try to make the lawsuit go away. When she loses the lawsuit she is ordered to pay a large judgment (plus the attorneys’ fees). Jen shortly has to file bankruptcy and her good credit is ruined. She ends up moving back into her parents’ home.
If Jen had owned a Renter’s policy before her dinner party, the insurance company would have provided her legal defense and paid a judgement or negotiated settlement – up to the policy limit. So, for its liability protection, a Renter’s Insurance policy is as important as Homeowners insurance protection.
Your apartment doesn’t need to be full of expensive clothing, furniture and electronics to justify purchasing Renters Insurance. The coverage is for financial protection. Renters policies are not very expensive and can often be bundled with an auto policy. Call an insurance agent for more information and a quick quote.
If you are renting your home and experience fire or smoke or water damage, give us a call. We will answer your call and discuss your situation 24/7. Floodco, LLC 406 892-1717.