If a fire or water damages the building, it’s not your problem — or is it?

Renting can certainly have its advantages over buying. Once your lease is up, you can upgrade your home easily. If something breaks, like a heater or expensive-to-repair plumbing, you just pick up the phone and call the landlord. If a fire or water damages the building, it’s not your problem — or is it?

Insurance coverage for rented properties is split between the landlord and the tenant. The building itself is insured by the landlord's insurance policy, as is any liability for bodily injury due to the landlord's negligence. However, the landlord's insurance policy does not provide any liability coverage for you and it doesn't provide any protection for your personal belongings. If the building is damaged by fire, water, or any other covered peril — or you’re a victim of theft, the landlord's insurance policy doesn't provide any coverage for your financial loss.

Renters insurance policies are typically much more affordable that homeowners insurance policies because you're not providing insurance for the building itself. However, many of the other coverages found on a homeowners insurance policy or landlord policy are available for you as a renter.

With renters insurance, you can insure your personal belongings up to a selected coverage limit. Think about how much it would cost to replace all your belongings if you had to start over.

You can also choose a personal liability coverage limit to help protect yourself against injuries to others. Think slips, trips, and falls. A single mishap resulting in injury can lead to liability of thousands or even tens of thousands of dollars. Your renter's insurance policy can provide the liability coverage you need.

Many renters insurance policies also come with coverage for loss of use — and this can be a big expense if you're not insured. If the house or apartment you're renting is damaged and you're unable to stay there temporarily, your renter's insurance policy can help cover the difference in cost for temporary housing and the extra expense of eating out.

Many insurers provide discounts for combining insurance coverage with one insurer. Just reach out to your broker to find out if any additional discounts are available. For example, it's common to find a discount for combining auto insurance and renters insurance with the same insurer, which reduces the overall cost of both policies and gives your household much better protection than just one policy.

Have any questions? We can help.

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