INTERVIEWER: Why do you need renters insurance?
STEVE: Well, renters insurance is necessary whenever you choose to rent a house or an apartment. The building itself is always insured by the person or company that owns that building. Everything that is inside that belongs to you, your contents and everything you have, is your responsibility. The tenant’s policy covers everything that belongs to you that you have in that house or apartment.
INTERVIEWER: I have four apartments in my building. What if they catch fire? Does that solve my problem, if I am damaged by fire?
STEVE: No, actually, it doesn’t deal with that. That is what usually happens; your neighbor’s apartment catches fire, and then the next thing you know, your apartment catches fire in the middle of the night. There are people all over the parking lot, there are fire trucks, and your apartment is on fire. If you don’t have renters insurance, you’re in big trouble. You usually end up living in your sister-in-law’s house or worse.
INTERVIEWER: What kinds of things does the inside of my apartment or house cover?
STEVE: Well again, the building owner’s policy covers the walls, the buildings, the carpets, and everything that is part of the building itself. All your belongings, your clothes, your furniture, your television and your computer are your responsibility. That’s what the renter’s policy covers; your kitchen utensils, your clothes and your shoes. All of those things are covered by a standard renters policy.
INTERVIEWER: I have a lot of company. Does that take care of the people who come to visit me? What about your clothes? What if they fall down the stairs?
STEVE: To answer your first part, your clothes are your clothes, and that is covered by your insurance. Falling down the stairs is a great question. Unfortunately, that kind of thing happens all the time. If someone is injured while visiting your home, you may be liable for any damages suffered. Again, renters insurance provides liability coverage for just that.
INTERVIEWER: Is it expensive?
STEVE: Renter supplies are inexpensive. They generally cost twenty to twenty-five dollars a month. They give you excellent peace of mind, knowing that if the worst happens, you are covered.
INTERVIEWER: Does that include someone breaking in?
STEVE: It does. All policies are different when it comes to theft and robbery, but all policies provide coverage when someone breaks into your home and steals your belongings. There are limits on the things that can be stolen, limits on the amount of electronic products and limits on the amount of jewelry and things of that nature, but in general, yes. You are protected against theft in all renters policies.
INTERVIEWER: Can an insurance company provide renters insurance?
STEVE: They can and do every day. They have several different companies available, depending on your specific needs.
INTERVIEWER: Again, can you do it over the phone? I can’t take the day off to go in and buy it.
STEVE: Yes, they can take care of everything over the phone in about fifteen minutes.
INTERVIEWER: Thank you.
STEVE: You’re welcome.