Renters Insurance

Do you rent a home or apartment? With the stress of moving into a new rental property, a renters insurance policy may not be on the top of your to do list. According to a 2022 online survey, only 55% of renters in the United States have renters insurance. 

Let’s start with the basics. 

What is Renters Insurance? 

Renters insurance is an insurance policy that will cover your personal belongings within a rental due to unexpected damages or theft. A renters insurance policy usually has three types of coverage: 

Personal property : Personal property coverage can protect your belongings, such as furniture, clothing, jewelry, and electronics. Many policies cover personal belongings that you are also using outside of your home. 

Additional Living Expenses: Additional living expense coverage can help cover increased costs you incur if you are temporarily relocated due to a loss. 

Liability : Liability coverage can cover expenses if someone brings a lawsuit against you for injury or property loss and you are found liable. 

Am I required to have Renters Insurance? 

California Oaks Property Management requires all tenants to have $100,000 of liability coverage. Tenants have the option of shopping for their own policy, or signing up for renters insurance through their tenant portal. 

If a tenant does not meet the liability coverage requirement, they will automatically be enrolled in the Liability to Landlord policy. (This policy does not cover the tenants personal belongings.)

Still unsure if you should get renters insurance?

We’ve put together the top five reasons to get a policy today. 

1. You aren’t covered by your landlord’s insurance

Many tenants mistake thinking that their landlord’s homeowner’s insurance will cover their belongings. Your landlord’s insurance policy is designed to cover the physical structure itself, not your personal belongings- regardless of who is at fault. 

2. Protect your personal belongings

The cost to replace your personal belongings will be covered in the event they are destroyed or stolen. For example, there is a fire or major plumbing backup within your apartment that destroys all your personal belongings. 

Are you prepared to pay to replace all your belongings in the event of an emergency? The average renter has personal belongings that are valued from $20,000- $30,000.

3. Less out of pocket expenses 

Many tenants assume that their landlord will cover their relocation costs. If you experience significant damage in your apartment that makes it uninhabitable, you will be required to temporarily relocate while repairs are being completed. Your landlord is required to reimburse you your daily rent value while you are displaced (your monthly rent divided by thirty). 

But what if this doesn’t cover the full cost of a hotel and meal expenses? Most renters insurance policies can cover the gap in these expenses; including hotel costs, pet boarding, meal expenses, fuel costs, laundry costs, or storage fees.

4. It is inexpensive

According to online surveys, the average cost of renters insurance in California is only $16 per month, or $195 per year. Compare this monthly expense to the cost to replace all your personal belonging- we’d say it’s worth it.

5. Personal Liability 

You may think it is unlikely, but you can be held legally liable if someone is injured within your apartment or has property damage. In the event of a lawsuit for accidental injuries, accidental damage to property or injuries from your pet, the personal liability in your renters insurance policy can help pay for the property damage or medical bills. 

Have more questions regarding California Oaks Renters Insurance Policy?

Give our team a call today!

Disclaimer:  The information from this blog is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation.