Your daughter left a candle burning in her bedroom and it caught fire, destroying most of your belongings and causing extensive damage to your apartment. Do you have enough liquid assets to go out and replace all your things and also pay for the damage to the building your daughter caused? If you didn’t have any finances or insurance to cover the loss, you could very well end up with a judgment for wage garnishment until it’s paid, and that is just for the building. You still have to replace all your furniture, clothing, electronics, linens, and living essentials.
What if you hosted a party and provided alcohol and one of your partiers left your apartment and drove drunk, killing someone in an accident? The investigation leads to you and you are found liable. Do you have the money to pay?
These are just a few of the scenarios that renter’s insurance can cover. Also called “Tenant” insurance, this type of policy will cover most of what a homeowner’s policy covers except for the actual physical building.
Have you noticed the trend of rental companies and landlords requiring their tenants to obtain renter’s insurance? It’s not because they are concerned about your clothes or furniture. They want their own insurance company to have a way to recoup loss that you caused so their own premiums won’t increase.
Many people mistakenly believe that the property management company, owner, or landlord would be responsible to replace damaged personal items from a broken appliance or leaky pipe. This is not the case at all.
If there is a leaky water or sewage pipe that eventually leaks onto your bed, computer, stereo, and television would you have enough in the bank and be okay with replacing them yourself? If the answer to that is, “No,” then you will want to make the small investment into a renter’s policy.
You can customize a policy for your renters insurance and make it as basic or as comprehensive as you like. Contact Alliance Insurance Group and we will be happy to discuss what is most important for you to protect and design a policy that exceeds your expectations.