To illustrate why one might want to consider renters insurance, we would like to share a short story about a young couple and a recent experience with their apartment.
Like most modern couples, this young couple, let’s call them Mike and Mary, got up that morning, had a quick breakfast, and left for work.
Shortly after they left for work, Mary realized she had forgotten something. She returned back to their apartment, only to discover that water was streaming from their ceiling onto the kitchen floor. She immediately called her husband to tell him. He promptly left work and returned home to help her with the water issue. On his way home, he also called to report the water leak to their property manager.
As the story unfolded, Mike found out that the owner of the apartment immediately above theirs had forgotten to shut off the faucet in their tub. This quickly overflowed and flooded the apartment above, eventually finding its way into Mike and Mary’s apartment.
What Does Mike and Mary’s Experience Tell Us About Renters Insurance?
While the apartment building owners have their insurance policy that covers the exterior and interior of the building, including the flooring, sheetrock, and built-in cabinets, it does NOT cover tenants’ personal property.
If any of Mike and Mary’s furniture, clothing, computers, smartphones, electronics, paintings, or other personal property were damaged, the apartment complex’s insurance would NOT have covered the cost of repairs or replacements.
Things could have also been worse. Apart from the damage to their personal property, if there had been major damage to the apartment itself, the couple might have had to move out while repairs were made and live in a hotel or short-term rental. Without renters insurance, they would have had to pay the hotel bill themselves. That’s right; the owner’s building insurance policy would NOT have covered temporary living expenses either.
In addition to covering personal property and temporary relocation costs, a renters insurance policy also includes liability coverage, so if the property of others had been damaged, it would have been covered as well.
The Bottom Line
Mike and Mary’s experience could have had a totally different outcome. If Mary hadn’t returned to their apartment before things got really bad, the whole apartment might have been flooded. And the damage or loss to their personal property might have run into thousands of dollars.
Renters insurance can cost as little as $20 per month. Is it worth taking all that extra risk to save such a small amount? If you are a renter without renters insurance or know someone who is, call our office to find out more about coverage options and the cost without obligation. You could even qualify for a multi-policy discount!