Understanding Renters Insurance

Imagine: you just moved into a brand new apartment complex that looks over the lake. The complex has six floors, an elevator, granite counter tops, brand new cabinets, a dishwasher, a gym- everything you ever wanted. You spent hours looking at pictures of your rental unit before moving in, making sure that all of your new furniture you purchased will fit. After a few months of renting, the entire complex starts on fire; you grab your wallet, phone, charger, and keys. The fire continues to spread, and you begin to panic as you think about all of your personal belongings you had to leave behind.

According to the Insurance Information Institute, only 37% of renters have renters insurance. While it is hard to imagine yourself in the scenario above, it is important for renters to understand that a rental insurance policy is one of the most affordable safety nets.

Is your landlord in charge of your damaged personal belongings?

The answer is no. Renters must be aware that the landlord is not financially responsible for their tenant’s personal items when there is a fire, theft, or other catastrophe. The landlord’s insurance policy only covers the building- NOT your personal possessions.

What does a renters insurance policy cover?

Renters insurance includes three basic types of protection:

1.)    Personal Possessions

  • Protects your personal belongings from fire, smoke, lightning, vandalism, theft, explosion, windstorm, water and other disasters listed in the policy.

2.)    Liability

  • Protects you against lawsuits for bodily injury or property damage that you or your family members cause to other people. It also pays for damage your pets cause. For instance, if your dog bites the neighbor, you’ll be covered.

3.)    Additional Living Expenses

  • If your home is destroyed by a disaster that your policy covers (i.e. fire) and you need to live elsewhere, renters insurance covers your additional living expenses.

Is renters insurance affordable?

Yes, according to the National Association of Insurance Commissioners, the average renter’s insurance policy costs between $15 and $30 per month.  Replacing all of your possessions or being liable for an accident will cost much more.

Where to get a renters insurance policy?

Ansay & Associates is one of the largest independent insurance agencies in Wisconsin. We have licensed experts that are here to help determine your risks and coverage needs. To learn more or to speak with an agent today, send us a chat by visiting our website at www.ansay.com or give us a call!


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