Five Biggest Renters Insurance Mistakes and How to Avoid Them

Renters insurance protects a tenant from liability claims and property damage emanating from perils such as theft, vandalism, fire, and some natural disasters. Despite this, only about 40% of tenants in the U.S. have this coverage. While some are just oblivious of their insurance needs, others have intentionally foregone renter’s insurance coverage due to the misconceptions they hold about it. Here are five common renters insurance myths debunked.

A Well-Secured Rental Property Doesn’t Need Insurance

While it is true that living in a rented house that has good security may lower the chances of burglary, it does not prevent such crimes from happening altogether. Additionally, burglary is not the only risk that tenants face. Other perils include water damage, bodily injuries, fire, and natural disasters. For instance, in California, the Dixie fire destroyed over 1000 structures, including residential properties, in just three months. Therefore, always carry renter’s insurance even if you’re confident about the security of your rented property.

Landlord Insurance is Enough to Provide Coverage

The landlord insurance policy only covers the building structure and fixtures such as the ceiling and HVAC system. The only situation where the landlord’s insurance can extend coverage to other items is if it contains contents coverage and the property was leased out furnished. Otherwise, you need renters insurance to safeguard your personal property as a renter. Renters insurance usually provides alternative living expenses or loss of usage coverage when a covered peril forces the policyholder to seek temporary alternative accommodation. Moreover, it provides coverage for belongings when the policyholder is on the go.

Read: 4 tips to maximize renters insurance benefits

Renters Insurance is Only Necessary If You Have High-Value Possessions

It has probably taken you a significant amount of time and money to accumulate your possessions. Research shows that an average renter has more than $20,000 in personal possessions. Therefore, whether you own big-ticket items or not, you should carry renters insurance. This policy will help you bounce back quickly if you lose your possessions due to a covered event. However, take note that the standard renter’s insurance policy may not provide full coverage for high-value items such as expensive works of art and jewelry. Consider supplementing your renter’s insurance with a personal property floater if you own such items.

Renters Insurance is Too Expensive

The average monthly rate for a policy that offers $20,000 in coverage is about $14. The actual cost depends on factors such as location, state, size of risk, and amount of coverage. However, some tenants assume that renter’s insurance is too expensive. You can get affordable renters insurance by shopping around, mitigating risks, bundling with auto insurance, relocating to a safer zone, and maintaining a good credit history.

Renters Have Fewer Liabilities than Homeowners

One of the benefits of renting a property is that you don’t have to worry about structural maintenance. Other than this, you will face most of the other problems homeowners encounter, including liabilities. For instance, if a neighbor’s child falls down the stairs while attending a birthday party in your rented house, the authorities will hold you liable for any injuries and costs that result. The same applies if you accidentally spill red wine on a visitor’s designer suit. Keeping this in mind, you should carry enough liability coverage on your renter’s insurance policy. This coverage will save you from paying for liability costs out of pocket.

How Jack Stone Insurance Agency Can Help

When you’re ready to secure a quality renters insurance policy, talk to our friendly experts at Jack Stone Insurance Agency. We serve Antioch, Brentwood, and surrounding cities in California. Contact us today to get started!

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