Renters
insurance.
Your landlord’s policy covers the building. Yours covers your life inside it, your belongings, your liability, and a place to stay if the unit becomes unlivable.
Why you need your own policy.
Many renters are under the impression that their landlord’s insurance policy will cover their belongings — unfortunately, that generally is not the case. Your landlord’s policy covers the building itself, but it may not include your personal belongings, and may not cover injuries sustained within the structure. That’s where renters insurance comes in.
Renters insurance protects your personal property in a rented apartment, condo, or home from unexpected circumstances such as theft, a fire, or sewer backup damage, and will pay you for lost or damaged possessions. It can also help protect you from liability if someone is injured on your property.
Renters insurance is similar in scope to homeowners insurance, with the exception that it does not provide coverage for the dwelling itself or other structures. If you rent a house or apartment and experience a fire or other disaster, your landlord’s insurance will only cover the cost of repairing the building. To financially protect yourself, you need renters (tenants) insurance.
Three types of protection.
Like homeowners insurance, renters insurance bundles three key types of financial protection. The big difference: it doesn’t cover the building or structure, that’s the landlord’s responsibility.
Protects your belongings from theft, fire, and a host of other unfortunate events. Insure enough to replace everything you own.
Covers lawsuits for bodily injury or property damage caused by you, your family, or your pets, including your legal defense, up to your policy limit. No-fault medical payments coverage lets an injured guest submit bills directly.
If an insured disaster makes your home unlivable, ALE pays for hotels, temporary rentals, restaurant meals, and other costs while repairs happen.
$100,000 liability, minimum.
Property Boss requires all residents to purchase and maintain liability coverage with a minimum amount of $100,000. Proof of an active policy is required before move-in and throughout your lease. Make sure the amount of liability coverage provided by your policy is sufficient to protect your financial and other material assets in the event of a lawsuit.
Before you buy a policy.
Does my landlord’s insurance cover my belongings?
Generally no. Your landlord’s policy covers the building itself. It may not include your personal belongings and may not cover injuries sustained within the structure. That is what renters insurance is for.
How much renters insurance should I buy?
Enough to replace all of your personal possessions after a burglary, fire, or other covered disaster. The easiest way to find that number is a home inventory, a detailed list of your belongings along with their estimated value.
Should I choose replacement cost or actual cash value coverage?
Actual cash value policies include a deduction for depreciation. Replacement cost coverage is pricier, but it pays what it actually costs to replace an item, think about how much you would get for your TV used versus what a new one costs.
What disasters are, and are not, covered?
Covered: fire or smoke, lightning, vandalism, theft, explosion, windstorm, and certain types of water damage such as a burst pipe or an upstairs neighbor flooding your apartment. Not covered by standard policies: floods and earthquakes. Flood coverage is available through the National Flood Insurance Program and a few private insurers; earthquake coverage can be a separate policy or an endorsement.
What is my deductible, and how does it work?
A deductible is the amount you are responsible for paying before your coverage applies. With a $500 deductible and $5,000 of fire-damaged furniture, the first $500 is yours and the insurer covers $4,500. Your deductible is listed on the Declarations page of your policy. In general, the larger the deductible, the lower the premium.
Do I need a liability policy?
Yes. Property Boss requires all residents to purchase and maintain liability coverage with a minimum amount of $100,000.
Do I have enough liability insurance?
Make sure the amount of liability coverage in your policy is sufficient to protect your financial and other material assets in the event of a lawsuit.
What does additional living expenses (ALE) coverage pay for?
Hotel bills, temporary rentals, restaurant meals, and other expenses you incur while your rental home is being repaired or rebuilt after an insured disaster, essentially the costs you would not have if you still had your usual roof over your head.
How much does ALE cover?
Most policies reimburse the full difference between your additional living expenses and your normal living expenses, but there are usually caps on the total amount or a time limit on how long payments continue. Make sure you are comfortable with the limits of the policy you choose.