Renter's Insurance -- What is it, do I need it, and is my roommate covered?

An alternative to owning your own home is to rent one. It can be a great way to save money towards the future purchase of a home. A typical insurance question that comes up often is do I need insurance as a renter? Also people are curious as to what exactly does the insurance cover, and if their roommate is automatically covered under the policy?

A landlord’s policy typically covers the structural damage to the unit and any liability that arises out of their duties as a landlord. For instance, if they are responsible for maintenance around the property and you get hurt, or the roof caves in, the landlord’s policy would cover this. However, your personal belongings, as well as any liability you assume would NOT be covered under their policy.

A renters policy is a relatively inexpensive policy that provides coverage for your items and liability. Your furniture, electronic equipment, clothes, etc are all protected, as well as if your dog bites someone when they are in your home. (Winnie and Phinn would never do this!) You’re also protected if your negligent and cause damage to the property (fire, water damage, etc) your policy will pay to repair the property.

As far as roommates… the answer we would recommend is to have your roommate purchase his or her own policy, so their “stuff” and liability is covered on their end. You could have them listed on your policy, but it is better they purchase their own. As always, Winnie and Phinn are happy to help explain this to you, but you should always talk to your agent at The Coffey Insurance Agency to discuss the coverage a renter’s policy provides in more detail.

Until next time...