Author: Mike Causey, Insurance Commissioner
A Feb. 23 Wake County apartment fire that injured six people and displaced 70 residents highlights the need for tenants to purchase renters’ insurance.
Renters’ insurance is one of the most affordable insurance products you can buy. While prices may vary depending on deductibles and the amount of personal property covered, many tenants pay prices as low as $25 a month. That’s not a lot to pay to have an invaluable tool for peace of mind.
If you have a renters’ insurance policy, you’ll know that if your belongings are stolen, damaged or destroyed by fire, storms, smoke, vandalism or other covered causes, they will be replaced.
Many renters have a misconception regarding insurance coverage inside their rental home. Your personal items, such as your clothing, laptop, cell phone, television and furniture are not covered by your landlord’s policy. Landlord policies only cover the landlord’s property, not your personal property.
If you’re renting, you may want to check the homeowners’ policy that your parents have. Some homeowners’ insurance policies include coverage for their children renting while away at college.
Typically, renters’ insurance protects against several perils, including fire, lightning, vandalism, theft, ice, snow and sleet.
Accidental water or steam damage from plumbing issues is generally covered by renters’ insurance policies. This would include water or steam damage from a heating, air conditioning or sprinkler system, or from a household appliance.
Flood damage from nearby streams isn’t covered by renters’ insurance policies unless the renters’ insurance is part of an inland marine policy.
If your rental home becomes temporarily unhabitable because of a covered incident, renters’ insurance will cover necessary increases in living expenses, such as housing, meals and storage. Keep your receipts.
Renters’ insurance protects you if you’re held liable for injury to others or if you damage rental property. It can cover medical expenses for individuals accidentally injured on your premises.
Some insurance companies offer discounts if you have burglar and smoke alarms, fire extinguishers, sprinkler systems or deadbolt locks on your exterior doors. Ask your agent if you’re eligible to receive any discounts.
Your insurance agent is a good source for information about renters’ insurance. I encourage you to discuss your needs with your agent. You may also get quotes online. Either way, make sure you read your policy carefully to find out what’s covered and what isn’t covered. Ask questions if there’s something you don’t understand.
If you still need help with your insurance, call our toll-free number at 855-408-1212 from 8 a.m. to 5 p.m. weekdays to speak to a consumer expert. You may also visit our web page at www.ncdoi.gov.