Common Renters Insurance Misconceptions

It's easy to assume that because you’re renting, you’re covered in the event of an emergency; sometimes, however, landlords or property managers are lax on coverage, and you may be without coverage for problems out of your control.

We typically see renters skew towards a younger demographic, and this can occasionally mean that younger adults may not have the wisdom and understanding of the importance of renters insurance -- even if you’re just starting out on your own!

However, there are certain misconceptions to personal renters insurance that aren’t true: we’ve demystified them below.

It’s Expensive!

Sure, adding an additional insurance policy may seem expensive in the short-term, but so is replacing your personal belongings in the event of a burglary, fire, flood or more. Renters insurance also covers any guests that are injured in your space, protecting you from a significant financial loss from medical bills or a potential lawsuit.

Plus, renters insurance is typically one of the most cost-efficient policies you can pick up -- generally less than car insurance and other common policies.

My Policy Only Covers So Much.

We touched on this briefly, but renters insurance covers damage to your personal property. So, if an electrical fire occurs in your apartment, or if someone breaks in and steals your coveted 4k UHD TV, you’re covered.

Additionally, if a guest hurts themselves in your apartment, you’re covered for medical bills or legal expenses that you may incur. Your renters insurance policy protects you and your family against property damage claims, bodily injury, and litigation if a visitor is injured on your rental property.

My Landlord Has It Covered.

Never assume your landlord offers renters insurance to you and other tenants. Oftentimes, landlords will hold policies only for damage to the building itself -- not for your personal property.

Even if your landlord owns property within your space, such as a refrigerator or microwave, they are not held liable for any damage to your personal property, i.e., a financial loss due to faulty appliances spoiling or destroying food.

Landlords are concerned with the integrity and upkeep of their building. How you decide to insure the belongings and guests within your four walls is left up to you. Furthermore, if you cause damage to the landlord’s building, i.e., leave an iron on that causes a fire, the landlord can sue you to pay for the damages they incur as part of your negligence.

I Don’t Own A Lot of Things.

Even if you treat your apartment like a dorm room, your stuff (no matter how much you have) is important and deserves to be protected against potential disaster. When you total up the value of your total belongings, you’ll be surprised to know that you probably have more invested in your stuff than you think. According to U.S. News, some experts in the industry argue that an average tenant in a two-bedroom rental owns $30,000 in personal property. That’s worth insuring, right?

I’m In-Between Homes. I Don’t Need Insurance.

No matter if you’re renting, downsizing or preparing for your next home, renters insurance is a smart way to make sure you and your belongings are safe and covered in the event of an emergency or an unforeseen accident.

Working with an independent insurance agent is a great idea in order to secure the best policy for your belongings and budget. He or she can discuss your lifestyle, finances and belongings and put together a policy that works for you.

Don’t let the misconceptions and confusion surrounding personal renters insurance keep you from carrying insurance that properly protects you and your belongings from unforeseen events. Feel confident knowing that all you worked for is not at risk.

Pepper, Johnstone & Company protects your family with a choice of multiple insurance companies to choose from, for home, auto, and business. We've helped countless people save money on their insurance while making sure they're properly covered. Visit us today at our website, or give us a call at 256-232-7818 to get us working on a quote for you today. You can also request a renters insurance quote here.