I Don't Own My Home. Do I Need
Renter's Insurance?
If the house, apartment, condo, trailer or storage unit you live in is rented, you don't have to worry about replacing the structure. That's the landlord's problem. You no doubt have valuable stuff that you couldn't afford to replace if it got burned, stolen or blown up.
Renters insurance provides financial protection against the loss or destruction of your possessions when you rent. While your landlord may shed a sympathetic tear for you and the burglary you just experienced or the fire caused by your overheated chai tea aromatherapy votive, destruction or loss of your possessions is almost never covered by your landlord’s insurance.
Since renters insurance covers only the value of your belongings, not the physical building, the premium is relatively inexpensive. When you purchase renters insurance, your possessions are covered against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm and water damage (not including floods). Like homeowners insurance, renters insurance also covers your responsibility to people injured at your home or elsewhere by you, a family member or your Rottweiler, Bruno and pays legal defense costs if you are taken to court.
Renters insurance covers your additional living expenses if you are unable to live in your apartment because of a fire or other covered peril. Most policies will reimburse you the difference between your normal expenses and whatever additional costs you take on but with limits. They won't let you run amok.
There are two types of renters insurance policies:
Actual Cash Value – pays to replace your possessions minus a deduction for depreciation up to the limit of your policy
Replacement Cost – pays the actual cost of replacing your possessions (no deduction for depreciation) up to the limit of your policy
With either policy, you may want to consider purchasing what's called a floater. A standard renters policy limits coverage for your jewelry, silver, furs and other high-toned stuff. If your bling-bling exceeds these limits, you should have things appraised and name them specifically in a floater. A separate policy, this floater provides replacement value insurance for your treasure and covers it for perils not included in your policy, i.e., accidental loss.
Yes, Greta can hook you up with all kinds of rental insurance.