When you rent an apartment, you are not purchasing real estate, so getting new insurance may not top your list of things to do. In fact, the majority of tenants are uninsured, either because they think they do not need coverage or they assume they cannot afford it. The truth is having renters insurance could spare you tens of thousands of dollars in personal losses and far more in liability damages, and when you purchase coverage through Strobel Insurance, it could cost you less each month than your streaming media subscription.
Landlord’s Insurance Protects the Landlord – Not You
One of the most common mistakes renters make is assuming the landlord has insurance that protects tenants against fires and other types of loss. While it is true that your landlord probably has insurance, this coverage is designed to protect the property owner against structural damages and liabilities that could arise as a result of having tenants. It is not designed to protect the tenants themselves. If a fire destroyed your apartment complex, the landlord’s insurance would cover the rebuilding and clean-up process, but it does not generally cover the loss of your personal belongings or the cost of being displaced from the place you call home.
You Need Your Own Coverage
Some landlords require tenants to purchase renters insurance before issuing a lease, but if yours does not, you should still talk to an agent about your coverage options. Without a renters policy, you risk losing everything you own and having nothing to show for it. Imagine coming home from work to discover your apartment destroyed or burglarized, and everything in it a total loss. Could you afford to start over again? How much would it cost to replace all of your clothes, shoes, toiletries, furniture, décor, kitchenware, electronics, and other belongings? Renters insurance is designed to protect you against these types of scenarios and more, minimizing your out-of-pocket costs after a loss.
What’s Covered?
Renters insurance covers your risk exposures as a tenant. This generally includes the things you own, the possibility of displacement, and the potential for liability. Whether you are only renting for a few weeks or planning to stay for years to come, having a policy can make good financial sense.
Personal Property
This type of coverage protects the things you own against damage and loss due to covered events. Depending on your policy, this can include losses caused by:
- Fire
- Smoke
- Explosion
- Hail
- Wind
- Falling objects
- Theft
- Vandalism
- And more
As the policyholder, you can select a personal property coverage amount that fits your needs. For example, an individual in a one-bedroom starter apartment is likely to need less coverage than a family with kids renting a three-bedroom house. A home inventory can help you determine the value of your belongings and how much coverage you may need to protect yourself against a total loss.
Talk to your agent about extra coverage needs for expensive items or collections that may not be fully covered by your standard renter’s coverage. You should also discuss the differences between actual cash value (ACV) and replacement value coverage. If your renter’s policy only includes ACV protection, you may only be compensated for the depreciated value of your damaged items. By upgrading to replacement value protection, you are covered for the full cost of replacement.
Displacement and Relocation
When major property damages occur, tenants may be forced to find somewhere else to live. Whether you will be allowed to move back in after a couple of weeks or you need to find a new permanent residence, your renter’s insurance can help cover the cost of displacement after a covered event. From hotel bills to the extra cost of managing your household without a kitchen or laundry room, make sure you are covered against additional living expenses as a result of your displacement.
Liability
You cannot undo damages done to another person’s property or injuries they sustain as a result of your negligence, but a third-party can sue you for compensation of damages when you are at-fault for their loss. This includes incidents that occur when you are hosting guests inside your home, as well as damages you or a member of your household causes elsewhere, such as at school or work. Renters liability insurance helps cover you against litigation when you are sued, and it can also help pay for judgments against you if you lose your case. Certain incidents, such as car accidents, are excluded, but there are many scenarios for which liability insurance can help safeguard your income and assets.
Wisconsin Renters Insurance
If you are leasing the space you live in or planning to start renting soon, talk to an agent at Strobel Insurance to find out more about your Wisconsin insurance options. From small studio apartments to large executive homes, renters insurance is available to fit your needs and protect you against a wide range of loss. As an independent agency, we can shop and compare coverage from multiple Wisconsin insurers. We can answer your questions, offer guidance, and provide ongoing support long after you purchase your policy.
Our goal is to help you save money on the protection you need without sacrificing the quality of your coverage. We can show you how simple changes, such as a higher deductible or the installation of a monitored home security system, can help you save on the cost of coverage.
For more information about Wisconsin renters insurance or to request your free quotes, contact our office today.
