Reasons You Need Renters Insurance

Many consumers are deciding to rent rather than purchase a home. Statistics show home ownership rates are lower than they have been in the last 50 years. Despite these numbers, most renters do not have renters’ insurance. Here at Sanford Insurance, we believe these numbers need to change!

There are many reasons why tenants should have renters insurance.

Protect Your Possessions
The landlord’s policy is only going to cover the house or structure itself in the event of a fire or other catastrophic event. The policies are not going to cover the renter’s personal belongings or anything else that doesn’t belong to the homeowner.

If there is a flood or fire in your home, just about everything is going to be destroyed. Unless you have money to replace your TV, laptop, furniture, and all of your personal belongings, you need to have insurance to cover all of these items.

Some policies cover the Replacement Cost of your items, while other policies cover the Actual Cash Value. The Replacement Cost policy is the best option for most renters. The Actual Cash Value will only replace the value of the items minus the depreciation of those items, but a Replacement Cost policy covers the cost of purchasing the items in new condition.

Fire
When your home catches on fire, just about everything is destroyed. If your electrical appliances caused the fire, you may be liable for covering the landlord’s costs to repair the property. If faulty electrical wiring is the cause of the fire, the landlord would pay for the costs to repair the property through their homeowner’s insurance, but it still may not cover your personal belongings.

If you live in an apartment, townhouse, or condo, and a fire in your home spreads to other properties, you could be held liable for damages to your neighbors’ property. The appropriate renters coverage covers your liability for these losses.

Water Damage
Freezing temperatures can cause problems with the heating system, the air conditioning, water sprinklers, or other appliances. If you live on the 2nd floor and a pipe bursts, you are liable for the damage if the water seeps in the ceilings in the residence below.

Theft
The landlord’s homeowner’s policy probably doesn’t cover theft of your personal property. The tenant is responsible for replacing theft of personal property. It is not uncommon for these losses to total tens of thousands of dollars. Most renters aren’t financially prepared for a robbery. This is where the renters policy steps in to cover the cost after a break-in.

Personal Injury
When you have friends over for dinner, you could be held personally responsible for their injuries if they slip on a wet floor. Most policies include liability coverage to protect you if a guest gets injured in your rental property. It will not only cover the cost of their injuries, but it can cover court costs and other related expenses.

Landlord Requirement
Some landlords require tenants to have rental insurance as part of the rental agreement. In the state of Virginia, landlords can require their tenants to have renters insurance if it is included as part of the lease agreement.

If you are renting a condo, townhouse, apartment or home, you owe it to yourself to protect your livelihood and your personal belongings. The landlord’s homeowner’s policy only covers the structure of the home, and not your furniture, appliances, phones, etc.

Don’t take any unnecessary risks with your life. Contact us today to learn about our affordable plans to protect your family and your assets.