How Does Renters Insurance Work?
Some only purchase renters insurance because it is required by a landlord, however it offers very important coverage, regardless of requirements. Not only does it protect your belongings worldwide (i.e. in your home, your car, or your luggage) from perils such as theft, fire, and water damage, it also protects you financially if you were to be held responsible for injuries or property damage.
Who Needs Renters Insurance?
Anyone who rents an apartment, condo or home needs renters insurance.
Liability Coverage
Liability coverage protects you financially if you are held responsible for others’ injuries or property damage. Liability covers you both in and outside of your rental. Here are a few examples:
- A guest trips over your furniture and suffers a head injury.
- Your pet bites or scratches.
- Your toilet overflows, and damages the unit below.
- You injure someone while playing sports.
- You run over someone’s ankle, or damage a car, with a shopping cart.
Personal Property Coverage
Personal property coverage covers your belongings, including furniture, electronics, clothing, kitchenware, etc. Coverage is usually worldwide, meaning your belongings are covered in your rental, in your car, and in your luggage while traveling, for example. Covered perils include fire, theft and water damage, among others. When starting a policy, you will need to select a personal property coverage limit that is based on the value of your property. Just about any limit can be chosen.
Loss of Use Coverage
Loss of use coverage covers additional living expenses; primarily the cost of a hotel, apartment, or rental home, if your home is rendered uninhabitable by a covered loss. Coverage under a renters insurance policy is based on living expenses and the time it might take to either repair your home or move permanently.
Landlord Requirements
An increasing number of landlords require renters insurance. They are most concerned with liability coverage, since if you carry liability coverage it is less likely that the landlord will need to use their own liability coverage. Some landlords even ask that the tenant add them to the renters policy as an additional insured. That way the landlord can take advantage of coverage under the tenant’s policy if the landlord is sued after their tenant causes injuries or property damage.
Are There Additional Benefits in Starting a Renters Insurance Policy?
Renters insurance will typically discount your auto insurance policy. In fact, sometimes the discount on your auto insurance policy is greater that the renters policy itself, in which case the renters policy is essentially free!
Contact Chris Elliott Insurance Agency for Renters Insurance in Greater Seattle!
Our Seattle agency will take the time to understand your unique needs, and will structure a renters policy with the proper coverage and an economical premium. Contact our team today!
