As a renter, obtaining insurance is an important step in keeping your property safe. Renters insurance is designed to cover lost, damaged, or stolen personal possessions. Some insurance policies do provide liability coverage if an individual is injured within the unit. However, far too many renters feel insurance isn’t necessary or too expensive. Here are some things to know about renters insurance and how it works.

What is Renters Insurance?

Renters insurance is designed to provide peace of mind to tenants in the event of a problem such as theft, damage to property, and more. Renter’s liability insurance protects the renters in the event of a lawsuit, and will pay for legal defense if there is a case against the tenant.  Policy holders will have a deductible that must be paid if a claim is made.

What Does Renters Insurance Cover?

Insurance is designed to provide financial compensation for tenant’s damaged or stolen possessions due to vandalism, fire, and theft. There are additional policies that do provide other coverage options, but it’s based on the tenant’s personal property possession amount. Landlords normally have insurance that covers the property itself. Some of the common things that are covered by rental insurance include:

  • Furniture
  • Clothing
  • Jewelry
  • Collectibles
  • Computer equipment

Is Insurance Necessary?

Since most landlords have an insurance policy to cover the structure, many tenants do not feel insurance is necessary. However, rental insurance is a very small cost, and can cover $20,000 or more for personal possessions if something does indeed happen.

Some landlords do require tenants to purchase rental insurance as part of the lease agreement. A property management company can assist in drafting correct contracts and managing the property to help tenants understand what is required of them.

What Renters Insurance Does NOT Cover

It is important to read the policy to understand what is and what is not covered. In some situations, insurance does not cover certain things based on the policy:

  • Natural disaster damage – flood insurance is normally a separate add-on to an insurance policy.
  • Vehicle theft – rental insurance does not include vehicle theft. However, if the car is broken into, the insurance does cover the possessions that were taken.
  • Items without a paper trail – when an insurance claim is made, some insurance companies will require proof of purchase of the item (such as a television or computer equipment).
  • Roommate items – tenants with roommates need to have their own insurance policy. If the roommate has items that are stolen or damaged, it is not covered by the policy holder unless the roommate was added prior to the incident occurring.
  • Pest damage – rental insurance is not designed to deal with pest problems.
  • Physical property – insurance for renters is not designed to cover the physical structure itself. The landlord insurance policy is designed to cover the building and issues that occur such as a leaking roof, broken pipe, and fire.

Keyrenter San Antonio Property Management is here to assist landlords and tenants with insurance-related questions and concerns.