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Let’s be honest: Most of us are annoyed by Insurance and most of the time, we’d rather simply not pay the premium thinking ‘it always happens to the neighbor!’.
There are a couple of misconceptions about Renters Insurance and when speaking to customers in New York, we’ve found that many of them have the same incorrect ideas!
One huge misconception is that the Landlord’s insurance will cover the Tenant for the loss of Personal Contents and coverage for Personal Liability; there is no truth to this whatsoever!
Another common one is that a renter is sub-leasing from another person and the other person has insurance! Once again, if you are not the ‘Named Insured’, you’re contents aren’t covered and they certainly won’t cover you for Personal Liability claims against you.
It is now becoming more common to find Landlords requiring Tenants to purchase renters insurance as a condition of the lease; this is nothing to be offended about. For example, if you were to lease your property for $2,000 per month, how would you feel as a Landlord if the tenant didn’t care to carry a Renters Insurance policy covering their personal belongs and having personal liability coverage to cover them for negligence claims? Further, how would you feel if you knew the insurance premium may be as low as $150 – $200 per year depending on limits and deductible chosen?
Landlords are now becoming more cautious, utilizing management companies and legal services to underwrite their risk more carefully! A great tenant who doesn’t need to be asked to purchase renters insurance would more likely be a good tenant to have.
What does Renters Insurance Cover?
Renters insurance covers more than just stolen or damaged items, it can cover your additional living expenses if you are unable to stay in your rental unit due to a covered loss – this may involve a short term hotel stay or a temporary rental reimbursement at a different location. Policies include Personal Liability coverage offering protection for claims of negligence against the tenant; this is particularly valuable to the Landlord as if they are listed as an Additional Insured on the policy, they will be able to file a claim and will not be subject to the deductible if the property is damaged due to the negligence of the tenant.
For tenants who are sincerely interested in insuring their belongings, it is great to know that most policies today include Replacement Cost – Contents which allows for personal belongings not to be depreciated against when a claim occurs.
Renters Insurance policies generally offer coverage for common furniture, electronics, clothing and other personal belongings that are easily replaceable and not of high value in nature; for example, these policies are not designed to cover valuable jewelry, fine arts or collectibles. Tenants who have high value personal belongings may be more interested in a Personal Article Floater which is available and many times requires an appraisal of listed items.
What do I need to get a quote / buy renters insurance?
A basic renters policy is very simple to quote and purchase; you may click on the logo above and answer only a few simple questions (i.e. name, address, contact information & required limits) and you’ll have an instant quote. If you are confident that you have what you need, you may proceed and purchase the policy (you’ll then need your requested effective date & a credit/debit card or checking account to complete the online payment process).
