What is renters insurance and why is it important?

At first glance, many people assume renters insurance is only to protect their personal property. But did you know that renters insurance actually provides three types of coverage? 1. Personal Property or Personal Belongings Coverage: This includes items such as furniture, clothing, electronics, appliances, and bedding to name a few.  However, there are certain personal...
<a href='https://mydistinct.com/author/noramydistinct-com/'>nora@mydistinct.com</a>
nora@mydistinct.com
September 8, 2021
3 min read

At first glance, many people assume renters insurance is only to protect their personal property. But did you know that renters insurance actually provides three types of coverage?

1. Personal Property or Personal Belongings Coverage:

This includes items such as furniture, clothing, electronics, appliances, and bedding to name a few.  However, there are certain personal belongings that may not be covered if they are above a certain value.  For items such as jewelry, artwork, and collectibles, one must usually add-on to their policy for additional coverage. 

2. Renters Liability or Personal Liability Coverage: 

Let’s say you are having a dinner party, one of your guests slips and falls in the kitchen putting you at fault and then sues you. General liability coverage may cover court costs and attorney fees that your renters insurance otherwise wouldn’t. Think of it this way: personal property coverage covers your belongings, personal liability insurance covers you!

3. Additional Living Expenses Coverage:

This coverage can provide the policy holder with reimbursement if a covered disaster results in temporary relocation from the property.  Examples of reimbursement may include lodging, food, and other living expenses.  While the policies may vary, covered disasters often include smoke, fire, explosions, theft, vandalism, windstorms, lightning, and water damage from an internal source.  

Flood Insurance Policies/Coverage: 

Generally speaking, renter’s insurance does not cover damage to your belongings in the event of a flood (this also applied to sewage overflows that enters the home). If you live in a flood zone, we highly recommend you review flood coverage with your insurance agent as part of your renters insurance. If you are unsure about whether or not you live in a flood zone, please refer to your lease agreement or check the FEMA flood map.

Final Thoughts: 

It’s easy to fall into the mindset of “but that wouldn’t happen to me”, and chances are, it might not.  However, it’s always better to be safe than sorry, especially in an event that is out of your control.

What is in your control?

Regularly checking for leaks under you sink, at the base of your toilets and anywhere else where water can easily pool.  It is absolutely crucial that any leaks or water damage is reported to your property manager AS SOON AS THEY ARE NOTICED!  Failure to do so or negligence of the issue can cause irreversible damage the property that becomes the tenant’s responsibility.  If these things are caught right away, further damage can be avoided.  When in doubt, call and ask as soon as you notice!

As you may have gathered, there can be a lot of gray areas when it comes to what may or may not be covered depending on the company you choose to buy a policy with, and the policies themselves.  It is always a good idea to review your options with your insurance broker to make sure you’re getting the coverage you desire. 

Finally, if you haven’t done so already, please have your agent include Distinct Property Management as one of your certificate holders so we can be sure to have your policy on file. 

Disclaimer: Distinct Property Management is not an insurance agent and can not advise what coverage is appropriate for you. Please consult your insurance agent.

You might also like
April 12, 2022

Property Maintenance Tips: Preventing Grease Buildup in Your Kitchen Sink

We at Distinct Property Management run into maintenance requests about clogged kitchen sinks at least once a week and in 99.9% of the cases the cause was a build up of grease, which has turned into black thick goo. Grease is a normal substance found in the kitchen, and comes from cooking processes and food...

3 min read
September 17, 2020

About the importance of dryer vent cleaning

Do you know why regular cleaning of dryer vents is so important? As a tenant, you understand the importance of checking your smoke detectors, changing your air filters and keeping up with other preventative maintenance in your home. But how much time do you spend cleaning your dryer vent? If you’re like the average resident,...

3 min read
March 20, 2020

Sanitary Wipes Reminder

These little fellas still don't belong into the toilet Please remember the following when using paper towels and disinfecting wipes. This could save you money in plumbing repairs and an after-hours nightmare. Please read on here. As Americans stockpile disinfecting wipes and paper towels to clean their homes more often to reduce the risk of...

1 min read