Who buys renters insurance, the tenant or the landlord?

“Who buys renters insurance? The tenant or the landlord?” is easy to answer: The Tenant.

If you want renter’s insurance, you’ll need to contact TruePoint Insurance in Fisherville, KY to get a quote because it’s unlikely that your landlord is going to cover your personal property for you.

Do you need renter’s insurance?

The short answer is: It depends on what you want to be covered. You might not have much going on in your apartment. If it’s a small studio and most of your stuff is in storage or back at mom and dad’s house, what do you need renter’s insurance for? You might not want to bother getting an air mattress and a TV covered if this is just a temporary place.

But before you say no it’s important to consider the liability risk.  Lots of things can happen that could expose you to a lawsuit.  You have friends over and one gets hurt.  You may think your friends aren’t going to sue you.  I hear you, they may not.  What happens if your friend brings a friend and they get hurt.  Different ballgame.  What happens if your negligence leads to fire, you give tricker treaters some bad candy; things can get pretty ugly pretty fast and with the general liability protection included with your renter’s policy you are on your own.  No money to pay claims and no one to help defend you.

But you might not have a choice

It used to be that rental properties were something of a renter’s market. You could always go somewhere else with your hard earned money. Now, landlords know that renters are desperate. Many landlords may require tenants to have renter’s insurance. It might not be fair to tenants, but that’s capitalism for you. When you have something scarce, you tend to leverage it for whatever you can get, and renters insurance takes some of the pressure off of landlords.

But that doesn’t have to be such a bad thing. TruePoint Insurance can set you up with a solid insurance package at a reasonable price so that you can cover your belongings in your apartment without breaking the bank. Whether you want to stay protected or renters insurance is part of the lease agreement, it doesn’t have to be unreasonably expensive. Contact the agents of TruePoint Insurance in Fisherville, KY to get a quote and get started.

Fireworks Accidents – Part 2

Fireworks are dandy, but at what point will your homeowners insurance pay

In part one we discussed that a homeowners policy may be available to handle losses involving fireworks. However, this is not

always the case as there are instances where your homeowner policy does not offer coverage.

Legal Issue

If it’s illegal for you to set off fireworks, this legal hurdle could result in any loss being excluded by the policy.

Be prepared to be uninsured if you don't know your do's and don'ts about fireworks

 

Business Issue

A homeowners policy is meant to handle losses related to owning and living in a home, there’s no coverage for a person who uses their home for making, selling, storing or distributing fireworks. Any business activity involving fireworks is going to cause a big problem if a loss occurs.

 

Who Is Injured Issue

Injuries to yourself or others in your household are not covered because Medical Payments and Liability coverage is designed to handle loss suffered by persons outside of your household.

 

Intentional Loss IssueFireworks enter at your own risk

If an injury or damage to property is not an accident, there’s no coverage. Tossing a firecracker or aiming a bottle rocket at another person could be considered deliberate, even when no injury was intended. Deliberate acts and their consequences are commonly excluded by homeowners policies.

So when dealing with fireworks, make sure they’re legal, that they’re used carefully and only for entertainment. Then your chances are good that any loss may also be covered.

 

Return to Section 1

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Think you don’t need renter’s insurance. Maybe you should reconsider.

Insurance agent’s sell renters insurance based on cost. It’s easier that way, as the cost for renter’s coverage is insignificant when packaged with an existing auto policy.

But cost is not the real story. Property coverages are great, but the exposure that concerns me the most is liability.

Let’s say you have $25,000 worth of personal property. If you get a renters policy and it’s covered, great. If you have fire and all the property is lost your renters policy will pay. If you don’t then you lose $25,000. With or without a renter’s policy you know what your exposure is.

But what will happen you invite your neighbor over for coffee….. We all know the McDonald’s coffee story. If you don’t have a renter’s policy, you will be the one on the hook. With a renter’s policy, your exposure should be covered or at least significantly mitigated.

Will attorney’s fees be covered in the event of a frivolous lawsuit?  Most likely!

The bottom-line is simple. When we know the cost of a potential loss, we can better evaluate the risk-reward. Liability exposures are much more difficult to evaluate and there is no reasonable way to discern the value of an insurance policy. We live in one of the most litigious countries in the world.  Don’t underestimate the value of the renter’s liability coverage. More importantly, don’t pass on a renter’s policy based on the fact that you are willing to underwrite your own property risk. By doing that you are underwriting your liability exposure too.



 TruePoint Insurance offers many great options that allow renters to protective themselves from both property and liability exposures.  Call us today at (502) 410-5089, or visit our website and try out our Instant Online Rater where you can access real insurance quotes in real-time whenever or where you like.

Renter’s Insurance, another reason why we are insuringky.com