Unlike most homeowners, renters have a choice when it comes to purchasing insurance. While homeowners insurance is usually a requirement for a mortgage, renter’s insurance is an option, many consumers forego on the assumption that it is an unneeded additional expense.
Unfortunately, there are many misconceptions about renters insurance and too many renters go without it. Renters need to understand that they face many of the same potential risks that homeowners face in connection with personal property and potential liability for accidents at home.
Among the most common misconceptions:
The Insurance Department offers these tips for consumers considering renter’s insurance:
How much renters’ insurance do you need?
Talk to your insurance agent about the property you want to protect and the hazards against which you want protection. Your agent can give you specifics based on the type of policy you should consider. The agent can help with such issues as which hazards are included in different policies, how you should determine the value of personal property, what optional coverages are available, and how much liability coverage is included.
Can you get a discount on renters’ insurance if your residence has particular safety features, like a burglar alarm?
Many insurers will reduce premiums if you have fire or burglar alarms, fire extinguishers, sprinkler systems and/or deadbolts on exterior doors. Some companies might also offer discounts if you have more than one policy with them.
Could owning a pet cause your premium to be higher?
Certain municipalities require that owners of select breeds of pets have insurance policies to cover damages and/or injuries caused by the animal. This liability might be covered under a standard renter’s insurance policy, but some insurance companies might require the purchase of additional coverage.
Does renters’ insurance only cover you when you are at home?
Many policies do not limit protection to home-based situations. For example, insured personal property is often covered if it is stolen by someone who breaks into your car, or if it is damaged while not inside your home.
Is personal liability included?
A renters’ insurance policy covers your property and your personal legal liability for injuries to others while they are in your home.
Will you receive additional living expenses if you have to live somewhere else while your apartment is being repaired?
Many renters’ policies will cover the cost of additional living expenses if there is damage to the property you are renting and you must live elsewhere while the property is being repaired.
Additional consumer information on renters’ insurance may be found at the following site on the Insurance Department’s web site, https://www.ins.state.ny.us/hmonindx.htm. The site includes a “Consumer Shopping Guide for Homeowners and Tenants Insurance,” as well as a home inventory checklist consumers may use to catalog their personal property. Consumers with questions should also feel free to contact the Insurance Department between 9 a.m. and 4:30 p.m., Monday through Friday, toll-free at 800-342-3736.
Eric Dinallo is Superintendent of the New York State Department of Insurance.
