A recent estimate by one insurance company puts 25 million renter's without insurance in the United States. A kitchen fire that spreads to other apartments, a water leak that drains through three floors, the liability can be tremendous.
Renter’s Insurance is much like a homeowner’s policy. Coverage is nearly identical to that of a homeowner's policy regarding contents and liability.
Insuring your assets
Many renter’s think they do not need coverage, because they do not consider the replacement cost of their possessions. Consider, however needing to replace all or a large portion of one's belongings at a moments notice in time of loss.
As an example, think of the value of clothing, at retail price. It adds up fast.
Coverage against liability exposure
There is the liability exposure to consider. If residing in high density housing, an apartment complex for example, conditions for damaging others property are more likely to occur than in a home surrounded by yard. In many cases, if a loss occurs and the renter is deemed at fault, there is liability for the damages to the structure. Kitchen fires are an example.
One can have an All Peril Renter’s policy or Named Peril Renter’s policy. Just as in a home owners policy. All peril will cover you against all eventualities except those listed in the policy versus a named peril, which is limited to those perils listed in the policy. In most of Texas, an all peril policy is available through independent agents.
The benefits, therefore are:
- Insurance against loss of personal items at reasonable cost
- Discount, if possible, on auto insurance policy by having both policies with same company.
- Protecting oneself against liability to damages of rented property and property of others
- In close proximity environments, a fire can easily damage a neighbor's belongings. Damage to ones own apartment would also be a liability that would need to be covered.
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