What Is Renters Insurance and Do I Need It...

What Is Renters Insurance?*

Renters insurance is a type of insurance that is specifically designed to meet the needs of tenants.

Renters can’t rely on a landlord’s insurance, which covers the building but not your belongings. Without renters insurance, you’d have to pay to replace all your possessions if a fire, or other disaster happens with the building.

Renters insurance not only covers your personal belongings, but it also includes liability coverage and insurance for additional living expenses. Plus, coverage for guest medical payments can pay out for small injuries to guests (such as up to $1,000) no matter who’s responsible for the injury. While renters often focus on insuring their belongings, these other coverage types can prove just as valuable. 

Do I Need Renters Insurance?*

Renters insurance isn’t legally required, but a landlord might require it. Even if your landlord doesn’t mandate coverage, renters insurance can be a wise financial decision.

Renters insurance also offered liability coverage and temporary living expenses if you’re not able to live in your apartment because of damage caused by a covered problem.

*This information is from Forbes, https://www.forbes.com/advisor/l/renters-insurance-adv2-ms/?utm_content=1327112991097133&account_id=150505118&utm_term=kwd-82945775263376:loc-190&utm_campaign=688714955&network=o&device=c&msclkid=aebe9427669718d6021af3f5450907ad&utm_source=bing&utm_medium=cpc

Is Renters Insurance Required in PA?**

Renters insurance is not legally required in Pennsylvania. However, private rental companies can legally require tenants to acquire renters insurance as a prerequisite for renting a home in their community. While this may seem like an inconvenience at first, having renters insurance can prevent major headaches if someone breaks into your home or if a fire, burst pipe or something else damages your home. As such, it is in your best interest to have renters insurance if you rent your home!

Besides being in your best interest, there are several other reasons why a landlord or rental company may require tenants to have renters insurance. The following are three possible reasons why your landlord may require renters insurance:

1. Reduces Tenant Relocation Costs

Under Pennsylvania state law, landlords are required to reimburse tenants who are displaced from their homes due to fire, natural disasters or other events that require tenants to relocate. However, if the landlord’s tenants have renters insurance, it can significantly reduce the expenses of helping their tenants relocate.

2. Protects landlords in Case of Property Damage

In the case that a tenant’s house or apartment is damaged due to fire, natural disasters, or other causes outside of the tenant’s control, without renters insurance, the tenant could potentially file a claim against the landlord to recover their losses. However, if the tenant has renters insurance, they are unlikely to come after the landlord for such reimbursement, which can give the landlord peace of mind that the tenant’s belongings are insured in case of loss or damage.

3. Allows Landlords to Offer Pet-Friendly Homes

Pet owners account for a huge demographic in Pennsylvania and the rest of the United States. 70% of American households have a pet, according to the American Pet Products Association (APPA) and their National Pet Owners Survey. In PA, an estimated 60.2% of Pennsylvanian households own pets. When tenants renters insurance, which typically covers pet damage to property under liability coverage, landlords can open up their community to the pet owner demographic without having to worry about the costs of potential pet damage to their property.

What Are the Benefits of Renters Insurance?**

Renters insurance helps out tenants and landlords, alike. While we’ve covered the main benefits for landlords and tenants having renters insurance, there are many more benefits to discuss as they pertain to the actual tenants! The following are seven benefits of renters insurance for tenants:

1. Protects Your Belongings and Helps With Relocation Expenses

Many renters are unaware that landlords are not legally responsible for their belongings if they are damaged or stolen. As such, renters insurance should be a mainstay of any renter’s budget. If someone steals your belongings or a fire or natural disaster damages your home, having renters insurance will help recoup your losses and cover relocation expenses, such as travel fees, moving expenses or hotel bills.

2. Protects Your Belongings Away From Home

With renters insurance, your belongings are covered wherever they are. If someone steals your laptop at a coffee shop, airport or from your car, you can file a claim to your renters insurance provider for reimbursement. Some policies may also reimburse you if you lose a bag or suitcase while traveling.

3. Provides Coverage for Dog Bites

If your dog backs up its bark with its bite and injures another dog, animal or person, renters insurance will cover the medical fees, veterinarian fees or legal fees up to a predetermined limit through liability coverage. This coverage applies whether the incident occurs at home, at the dog park or at a backyard barbecue. Renters insurance will also have your back if your dog or other pet damages someone else’s property.

With that being said, if you own a dog whose breed is considered high-risk, you may not have coverage or you may have to pay a higher rate for coverage. Some insurance policies do not list these conditions outright, so you will want to find out what the coverage details for dog bites are with your insurance provider if you are a dog owner.

4.  Helps Cover Medical Fees for an Injured Guest

Nothing throws a wrench into your plans to be the perfect host or hostess like a guest experiencing an injury at your home. While renters insurance cannot prevent injuries to your guests, it can help with any medical expenses your guest requires should an injury occur at your home.

5. Coverage Applies When You Are Away From Home

Renters insurance will also cover you if you inadvertently damage someone’s property or injure another person when you are away from home, whether you are at Little Amps Coffee Shop, taking a day trip to Fort Hunter State Park or vacationing in France.

6. Includes Options for Identity Theft Coverage

Many renters insurance policies offer Add-On packages to cover you in case of identity theft, which includes legal fees and reimbursement for the time and effort you put into reclaiming your identity. This coverage also applies to forged checks or unauthorized usage of your credit or debit card.

7. Covers Legal Fees if Someone Files a Lawsuit Against You

If you are held legally responsible for property damage or an injury to another person, whether the incident occurs at your home, the supermarket, or halfway around the world, renters insurance will provide coverage for both the legal fees and any compensation required from you to the person or organization filing the lawsuit.

As you can see, renters insurance covers far more than the belongings inside your home! So if you are the minimalist type and are not too concerned about your possessions, renters insurance can still be of benefit to you.

**This information was provided by Triple Crown Corporation, https://www.triplecrowncorp.com/blog/do-you-need-renters-insurance-in-pa/

Average Cost of Coverage***

Renters’ insurance is fairly inexpensive, and most policies range from $15 to $30 per month. 

Many companies will allow you to bundle your renters’ insurance with other policies, like your auto insurance, making it less expensive.

Important Note: If you have a roommate, you will want to make sure that your name is on a policy, whethere through a shared policy or having your own - if your name isnt on the policy, your aren't covered. 

Is It Too Late To Get Covered***