clock January 27, 2014 comments No Comments flowchart Homeowners InsuranceOur Blog tag LandlordsLiabilityProperty MaintenanceProvidence RIRentersSafety

A fire in a multifamily home in Providence Rhode Island on Saturday has left 13 people displaced from their apartment. Headlines such as these remind me of why tenants need renters insurance. Could you afford to replace everything you own if you experience an apartment fire? Could you afford to put yourself up in a hotel until you found a new affordable apartment? Renters should strongly consider tenants insurance for all of these reasons.

Many renters make the critical mistake of thinking their landlord is the only one to need insurance or that the landlord would be responsible for everything in the house if there was a fire, hurricane, theft, vandalism, or other disaster. Think again. Landlord insurance covers the landlord’s interest in the building, their loss of rental income, and liability if they are to get sued. That’s it. Renters need to purchase their own insurance for their personal belongings, loss of use, and liability.

Renters Fire Insurance, also known as tenants insurance, has three coverage parts to it.  Personal Property coverage protects the insured’s personal belongings such as their clothing, furniture, electronics, etc. If there is a fire in the building, burglary, vandalism, leaking roof, etc and your personal items are damaged, personal property coverage will reimburse you for your lost or damaged items.

The second part of tenants insurance is called Loss of Use coverage. Loss of use refers to the inability to occupy your apartment due to a covered claim. This coverage will reimburse your expenses of having to live elsewhere while the apartment is being repaired after a covered loss. It might also cover your additional cost to find a new apartment if the home will not be repaired in a reasonable time frame. On average, it takes nine months to repair a fire damaged home. Could you afford to live in a hotel or extended stay apartment for nine months?  How long would it take you to find another suitable apartment if you wanted to move permanently?

The third part of renters insurance is Liability coverage. A tenant can become legally liable for injuries or damages caused, the same way a landlord can be held liable. For example, if a tenant leaves items in the stairs and someone trips and injures himself, that tenant can get sued.  If a tenant has a dog that bites someone, renters insurance will provide dog bite liability.  If a tenant accidentally leaves their stove on and causes a fire, he can be held liable for the damages caused to other parts of the building or other tenant’s belongings. Liability insurance is not just for landlords, it’s for renters too!

Rhode Island renters insurance cost is low comparable to other types of insurance.  Tenants insurance average cost is $200 per year.   Call Loiselle Insurance today if you are looking for renters insurance quotes.  Since we work with over twenty different insurance companies, we can save you time and money by shopping around for you. We find the policy that best fits your needs and renters insurance budget.

Author: Brenda Loiselle-DuClos, Vice President of Loiselle Insurance Agency

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