Renters Insurance

If you rent a property, you often feel reasonably safe knowing your landlord has to carry the insurance policy for your building, since they own the property. However, a landlord’s policy will cover their property, but not necessarily your own. Renters Insurance in California can help provide financial protection for your personal property, such as furnishing or electronics.

Determining Your Renters Insurance Needs

Renters Insurance is not usually a mandatory legal requirement. Car owners are required by law to carry insurance if they are driving, but renters are held to no such statute. However, some landlords may require Renters Insurance as part of a lease agreement. Be sure to check the language of your lease to verify if Renters Insurance is a requirement of your tenancy.

As a tenant, you have access and right of way to the property where you reside, but the structure itself does not belong to you. Renters Insurance does not extend to the structure itself.  That means the home you rent is not covered under a California Renters Insurance policy. Renters Insurance is designed to provide financial protection to the renter, not the landlord.

Fortunately, Renters Insurance is highly affordable. It is a much smaller risk for an insurance company to insure items and furnishings than it is to insure a structure and its contents. It is therefore a more affordable option than a traditional homeowners insurance policy.

Understanding Your Coverage Options

Renters Insurance provides financial protection for:

• Personal possessions
• Liability
• Additional living expenses

For your personal possessions, Renters Insurance policies may come in either actual cash value or replacement cost. A replacement cost policy will likely be more expensive, but Renters Insurance policies are generally affordable. An actual cash value policy will pay for damaged items minus the depreciation, whereas replacement cost policies will fully pay for the item.

Renters Insurance can provide coverage for certain accidents or events. Examples of covered events may include:

• Fire
• Smoke
• Vandalism
• Theft
• Windstorms
• Lightning

Renters insurance will likely not provide coverage for the following events:

• Expected or intended damage
• Floods
• Earthquakes

There may be other events not covered by your specific Renters Insurance policy, but all exclusions are generally spelled out in the insurance policy, so be sure to read through the policy.

Renters Insurance also provides liability protection. This coverage provides financial protection, up to an agreed-upon limit, against claims of negligence or wrongdoing on your part. This coverage is especially important if you have pets or family members living with you. Bringing dogs or other pets to stores or parks has become a common occurrence. Renters Insurance can protect you if your pet causes harm or damage to another person or property. While many people do not consider the possibility their animal may cause harm to another, accidents do occur.

Renters Insurance may also reimburse you for additional or temporary living expenses if you cannot access your rented property. If your rented property is uninhabitable due to unforeseen damages, you can use this coverage option to pay the additional expenses for staying in a hotel or other rental location. This coverage option likely has monetary and duration limits, so be sure to choose the right amount for your needs.

Why Business Property Insurance Is Necessary

Renters Insurance policies are affordable and recommended by Consumer Reports. A 2020 survey by the Insurance Information Institute reports that Renters Insurance policies have grown from 42% to 57% since 2018. With the rise of natural disasters across the United States that range from wildfires to storms and even sudden deep freezes, people are realizing unforeseen natural events can easily lead to financial crises.

A Renters Insurance policy in California allows a renter the peace of mind to prioritize their own safety and health, knowing expenses will be covered or reimbursed through an insurance claim.

More and more landlords are also realizing the importance of requiring Renters Insurance policies as terms or conditions of a lease. If both the landlord and the renter have insurance policies, the insurance companies can stand in as neutral third parties and decide who is responsible for covering damaged items. This allows the renter and the landlord to continue working together on amicable terms, even in the face of damaged property or unforeseen events.

To Learn More

To learn more about Renters Insurance and how the professionals at Jump Insurance can help you find the right policies for your personal needs, please visit Jump Insurance for more information.