RENTERS NEED INSURANCE COVERAGE
By Victor J. Lefeve
It has been estimated that almost 25 million renters in the
United States do not have adequate insurance coverage.
The primary reason this statistic exists is that most renters
feel that insurance is expensive, or they don’t need
it. Renters sometimes believe that their landlord’s
insurance will protect them.
To determine your insurance needs as a renter, you should
ask yourself the following questions.
- Do you own valuable property or high-tech equipment?
- Do you run a business out of your rented home?
- Do you live in a flood zone?
- Can you afford to defend yourself or pay a judgment if
you are brought into a lawsuit?
The following facts should help you to properly answer these
questions.
The average renter has more than $20,000 in personal possessions.
A personal inventory may reveal furniture, cookware, TVs,
stereos, computers, linen, clothing, art, jewelry, sports
and hobby equipment, etc. Perils that could cause loss or
damage to your property are theft, fire, vandalism, water
damage from plumbing, etc.
For someone operating a business from a rental home, renter’s
insurance may not be the only protection needed. A separate
business insurance policy may be needed as most personal insurance
policies exclude business ventures.
Even though you don’t own your rental home, hurricanes
Katrina and Rita have shown that anyone can be a victim of
flooding. Determine if your rented home is in a flood zone,
and ask your insurance agent for a flood insurance quote that
will cover the possessions in your home.
A renter’s insurance policy may also provide liability
insurance protection if someone is injured at your home or
if you accidentally damage your landlord’s property.
However, you should consider purchasing a personal umbrella
liability insurance policy since it is possible that a claim
or lawsuit could result in a very large financial judgment.
After you have considered these questions and facts, a talk
with your professional insurance agent will help you, as a
renter, to decide on the type of insurance that will be best
for you.
Victor J. Lefeve, CPCU, CIC, CPIA is president of Employees
Insurance Representatives, a local independent insurance agent.
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