What First-Time Renters Need to Know about Renters Insurance

During your first PCS, you’re so overwhelmed from learning move.mil and jumping through all the hoops that you’re just trying to survive the chaos. You’ve also packed, loaded the car, and headed to the new house you worked hard to find and budget for. Your first thoughts driving across the country probably aren’t about renters insurance, but military families need renters insurance.

When you’re first starting out, you don’t know what you don’t know, right?

It’s common for first-time renters to think more about bedrooms, bathrooms, fenced yards, and hardwood floors than protecting their items from disaster. Renters insurance isn’t fascinating. In fact, it’s just one more chore. But, it’s oh-so-important to purchase a well-tailored policy to meet your needs. Not all policies cover the same circumstances or amounts.

First-time renters often misunderstand renters insurance. Many think it’s a waste of money, especially if you’re living in military housing (more on that in a minute) or while transitioning from hand-me-down furniture and kitchen items into household goods you’ve purchased on your own.

Today, renters insurance covers much more, including your grandmother’s jewelry and protection from lawsuits. 

Here’s why tenants should strongly consider purchasing renters insurance:

1. Your landlord’s or military housing’s policy doesn’t cover your stuff.

It makes sense that you never considered renters insurance—you’ve been busy! Or if you did, you probably thought it was something your landlord or military housing company covered. 

Unfortunately, their policies do not cover your belongings. They’re required to have insurance on the property in case of a disaster, but it’s up to you to buy a policy that covers everything you’ve packed up and handed over to the movers. 

Rental insurance protects your household goods from fire, theft, weather, and water damage. Most policies pay for the replacement or send financial compensation for the total cost of your items. This is why the insurance company will ask you to inventory everything in the house—to buy adequate coverage. 

2. Renters insurance is affordable. 

Don’t worry; renters insurance won’t break the bank or burden your budget. For between $150 and $200 per year, you can buy a whole lot of peace of mind. It’s really a no-brainer. Don’t let thoughts of “it won’t happen to us” or “our stuff isn’t worth insurance” get in your way. If you have items worth more than $200 (for instance, your phone or computer accessories), it’s worth insuring them to help you recover from a major destruction event. 

3. Renters insurance covers more than just the items in your house.

Speaking of being worth it—have you ever forgotten your laptop in the car and breathed a sigh of relief because no one broke in overnight? Renters insurance covers incidents like this, too. Depending on the policy you create, it could cover a PCS shipment in transit, items in temporary storage, and damage that occurs during a power outage, like losing an entire freezer of meat due to downed power lines. 

Your renters insurance also should cover various forms of liability. For instance, if there’s a biting incident involving your dog or your child damages someone else’s house, your policy could cover you. Avoiding lawsuits is a pretty significant reason to sign up for renters insurance! 

4. It covers the after stuff, too. 

What exactly do you do if you have to move out of your house because it’s too damaged? Renters insurance often includes Additional Living Expenses to get you through the tough times. 

You could receive money for: 

• Hotels 
• Meals 
• Laundry 
• Rental furniture
• Pet boarding
• Moving 
• Storage

5. Your lease terms may mandate that you have renters insurance.

It’s more common than ever for property owners to put language in the lease saying the tenants must show proof of renters insurance. They might also request quarterly or semi-annual evidence of the policy. 

Traditional landlords look at the coverage as another way to protect themselves and their property. Landlords also think requiring renters insurance is a way of weeding out irresponsible candidates. In their mind, if you can’t afford or aren’t willing to pay for renters insurance, you’re a liability they want to avoid. 

On the other hand, from many renters’ point of view, the insurance clause is a small price to pay to sign a lease for the perfect house you’ve searched for. It might also protect your landlord’s responsibilities, but the policy protects you far more. It’s also better to have a landlord invested in the condition of their property vs. an owner who signs the lease and becomes incommunicado every day after. 

Although not all military housing companies mandate renters insurance, they’re at least highly recommending coverage. You’ll have to check with their leasing department to find out the details. The same is true for apartment rentals. 

Finding rental insurance isn’t as hard as you think. Major companies you’ve heard of (Allstate, Armed Forces Insurance, Farmers, Geico, Liberty Mutual, Nationwide, State Farm, and USAA) all offer versions that will suit your needs. Plus, if you ask, they probably offer a military or bundle discount.

By Dawn M. Smith for MilitaryByOwner