Does Your Renters Policy Cover It?


Everyone knows that life insurance, health insurance and auto insurance are valuable and necessary products for a successful financial plan. But when it comes to renters insurance, many people believe that they can get by without a policy. They assume that they are covered under their landlord’s property insurance policy and that this policy will reimburse them for any damages to their possessions and that they are not liable for any damages to the premises—ever. Unfortunately, that is not always the case. Let’s take a look at four different scenarios and see how renters insurance could help in each.

  1. It’s Friday night and it’s time for your friends to come over and watch the final episode of some long-running television show that you love. While inside your apartment, one of your friends slips on some water that you spilled on the floor but neglected to wipe up. He must go to the emergency room and the injury results in medical bills and missed work.

In this scenario, you are liable for your friend’s injury. You neglected to clean up the water and you created a potentially dangerous situation in doing so. If you have renters insurance, then the policy will cover the medical bills and may cover lost wages.

  1. It’s the holiday season and you are cooking for your family. The turkey is almost done, the mashed potatoes are whipped to perfection and the green bean casserole is sitting on top of the stove waiting to be served. Unfortunately, the wooden spoon that you left in the green bean casserole is hanging over the burner that you used to cook the mashed potatoes. It catches fire and your stove—along with your dinner—follows suit.

While your landlord’s insurance policy might cover you if a fire began due to bad wiring or faulty appliances, the event described above is something that you would be responsible for since it was the result of your negligence. If you have a renter’s insurance policy, then you won’t need to reimburse your landlord for damages out of your own pocket but can instead have your landlord submit the claim to your insurer.

  1. After a trying day at work, followed by a grueling hour at the gym, you come home to your apartment tired and ready to relax. As you walk up to your front door you notice that it seems to be standing open—and you’re pretty sure that you didn’t leave it that way. You slowly ease toward the opening, craning your neck to try and avoid getting hurt if someone is actually in the apartment and you see that the door has been kicked in. As you step over the remains of the door and your eyes adjust to the low light of the room, you notice that your new television, stereo, gaming system and other valuables are gone.

In this situation, your landlord’s insurance would cover the cost of replacing and re-hanging the door. But a landlord or property owner’s insurance policy won’t cover the contents within the apartments, as those are the renter’s responsibility to insure with a renters policy.

  1. You’ve finally decided to take the two weeks’ of vacation that you’ve been hoarding at work. You’ve gotten your passport, packed all your new vacation duds, and are ready to head out onto the open waters on a luxury cruise. Unfortunately, before you even get onto your ocean liner you realize that your luggage, including your MP3 player, laptop and your new sandals, are gone. They’ve been stolen and you’d have to get your money back for this trip in order to afford to replace them.

There is probably no one on earth who would expect their landlord’s insurance policy to cover stolen luggage that isn’t even on the premises of their apartment building. But did you know that your renters insurance policy actually will cover stolen luggage?

Renters insurance helps ensure that you are made whole when you are the victim of a theft, it helps protect you from liability when someone is injured in your apartment and it ensures that you can reimburse your landlord if you cause damage to the building or appliances as the result of accident or negligent behavior. It is a comprehensive policy offering protection that would be a mistake to do without.

For a quick quote on renters insurance call AmeriAgency at 615-209-9362

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