Drummer Realty

What Most Renters Don’t Know About Renters Insurance

It’s not worth the risk! In the event of a loss, theft or damage to your personal property it’s best to be prepared, and it happens far more often than people think. Renters insurance, also known as contents insurance, can be purchased for less than a dollar a day, yet experts say that many renters are still going without.
Did you know that it’s not the responsibility of the landlord to replace the renter’s personal items that are damaged due to causes out of the renters control like fire, water damage, theft, storms and outages? Should any of these unfortunate circumstances occur, the renter will only receive compensation for their losses if they had purchased renters insurance.
Renters insurance doesn’t just cover the loss or damage of personal items like furniture, electronics, clothes, and most other household items; insurance also covers any additional living expenses while the home is being repaired. Let’s say a pipe bursts in your living room ceiling causing significant water damage to the walls and flooring below. You’re now expected to temporarily vacate the premises while the property is being restored. Even though you are a victim in this scenario you have now been forced out of your home and are incurring the cost of a hotel along with any other related expenses. Had any of your personal items like photos or electronics been damaged, you would have to pay to replace those as well, if they were replaceable. It is not the responsibility of the landlord to cover expenses of this nature, although renters usually assume that the landlord must reimburse them.
Another possible scenario could be a life-changing event for anyone. In this example there’s a fire, but instead of the fire commencing from unsafe wiring buried in the wall, the fire ignites when you accidently leave your home before turning the space heater off. You return to a house that is deemed uninhabitable.  If that isn’t devastating enough, the property owner’s insurance company is now suing you for the damages, in the thousands. Thankfully the fire didn’t spread to the neighboring house only meters away because you may have incurred those costs as well. With the security of renters insurance, your third party liability coverage would have protected you for sudden and accidental damages to the dwelling.
Lastly, who do you think could be held responsible for the badly hurt mail carrier after she falls on the icy steps that you, as the renter, were in contract to keep de-iced? You guessed it, you could. Most people don’t think these scenarios are possible until it happens to them or someone they know, but as someone who works in the property management industry I see it all the time.
It’s important that you take the time to research and understand the risks you may be taking as a renter who’s not insured. Talk to your insurance company about your concerns and find a policy that’s right for you.

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