Do You Really Need Renter's Insurance?

Home Insurance in Houston

When I was in college and got my first apartment, my dad told me, “Always be sure to get renter’s insurance.” And, like most college kids would, I promptly pushed this bit of parental advice out of my mind. 

Big mistake. When I got back from winter break my freshman year, my apartment had been broken into—my TV, my roommate’s computer, and other personal items were gone. And I was slapped with the bill to replace them.

While moving into a new place can be a chore in itself, don’t forget to make sure you have the coverage and protection you might need in case of an emergency. Not sure what exactly it is you need to look for in your renter’s insurance policy, or still have questions? We’ve got the answers.

Why do I need renter’s insurance?

Most apartment complexes and landlords only have insurance that covers the damage to the actual dwelling, which leaves everything of yours—electronics, furniture, clothes, whatever—vulnerable. So, to protect your belongings in case of fire, theft, or damage, you need your own policy, called an HO4 or renter’s insurance policy. (Unless, of course, you have the funds to replace everything yourself!)

You also need liability coverage for damages caused by negligence. For instance, if you accidentally leave the kitchen sink on and it overflows into your neighbors’ apartment, you could be found liable for that damage—and required to pay for repairs, medical bills related to the accident, as well as defense costs if they bring a suit against you. Renter’s insurance would cover those costs.

No, none of this is fun to think about, but believe me—it’s a lot easier to plan (and pay) for it before it actually happens.

What exactly will my policy cover—and what won’t it?

Personal Property

Most standard renter’s insurance policies offer protection for your belongings in case of power surges, water damage, fire, vandalism, theft, and other events out of your control. However, most do not cover damage caused by flood water, earthquakes, mudslides, or nuclear hazards. If you live near a fault line or the water or are concerned about these hazards, talk with your insurance agent about getting a separate policy.

Also keep in mind that certain types of property will only be covered up to a limit set by your insurance company. So, if you have an engagement ring, a customized computer, or even an expensive set of golf clubs, you should consider purchasing an additional personal articles policy. These add-ons to your renter’s insurance are typically inexpensive (we’re talking a few dollars every month), but protect those really important items that would be costly to replace.

Loss of Use

Your policy also covers your living expenses in case you must leave your home after an accident. Say a tree crashes through your roof and the place needs repairs before you can live there again—loss of use will cover a hotel, food, and any other expenses you incur during that time.

Liability

Your liability coverage pays for bodily injury and property damage caused by negligence—like if your dog gets loose and bites the neighbor's kid and he has to get stitches.

You’re not, however, covered for negligence for expected or intended bodily injury (you throw a baseball in a parking lot trying to hit your neighbor), business pursuits (the cupcakes you bake in your apartment make someone sick with food poisoning—you would need a business owner's policy), or vehicle-related damage or injury (your emergency brake fails and your parked car hits someone—auto insurance covers this).

Additional Coverage

In addition to the basics, there are a few other types of coverage to know about. If a visitor suffers an injury in your home, your policy’s “medical payments to others” coverage will take care of the medical bills, regardless of who is at fault. “Credit card and bank forgery” coverage will protect against some monetary fraud attempts, such as if a burglar steals your credit card or check book during a break-in to run up fraudulent charges or write forged checks. And “property of others” coverage replaces not only your belongings, but others’—for example, if you borrow a friend’s laptop, and a leaking pipe destroys it.

Source: TheMuse

Home Insurance in Houston

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