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4 Ways Renters Insurance Saves You Money

When the apartment Marcus rented had a roof leak that caused damaged to his TV, laptop and bed, the landlord repaired the water damage to the roof and nothing else. That when he learned it was not the landlord’s responsibility to cover personal property — good thing he had renters insurance.

South Florida’s rental market is booming. You can’t drive more than a couple of miles without seeing new, high-rise apartment buildings, which seem to be popping up overnight. Hopeful tenants are flocking to sign leases, even before construction is completed. Some prospective lessees will be required to have renters insurance and others will undoubtedly wonder if it’s needed, and more importantly, if the cost of insurance worth it. In my clients opinions, YES!

$20,000 Renters Insurance Settlement

Longtime Pembroke Pines resident and renter, Marcus, had been asking himself the same question. It didn’t matter that his monthly renters insurance monthly payment was little more than the cost of a pizza, was it worth it he wondered? He got the answer when water from a broken pipe leaked into the apartment he lived in and damaged $20,000 worth of personal property. His landlord has insurance and that should cover him, right? That’s when Marcus learned a valuable lesson: no, your landlord’s property insurance covers the dwelling – not damaged and destroyed personal items.

Even though his insurance company took longer than was customary and necessary to approve his renters insurance claim, and we needed to file a bad faith suit, ultimately Marcus prevailed. In addition, his policy included the cost of his temporary living expenses while he waited for a new unit to become available.

Here are 4 common misconceptions about renters insurance.

1. You Don’t Own Much and Your Stuff Isn’t Valuable Enough for Insurance: Often people mistakenly undervalue their belongings. Even small items like furniture, clothing, towels, linens, artwork, etc. add up. According to Allstate Insurance, the average renter in a two-bedroom apartment has about $30,000 worth of personal property. Download our FREE home inventory list.
2. You’ll Never Need to File a Renters Insurance Claim: Fingers crossed that is true for you. When you rent, you can’t control how other people live. Just like with my client, Marcus. He didn’t do anything to cause the broken pipe, but he was a casualty of it. What if the neighbor above you forgets he left the water running in the bathtub or the neighbor below has a grease fire in her kitchen?
3. Renters insurance only covers my personal belongings: Personal property coverage is just one benefit of having renters insurance. Depending of your policy and coverage, your policy may include coverage if you’re held liable for bodily injury or property damage, medical costs for guests injured on your property, additional living expenses should your apartment become unlivable.
4. Renters insurance is too expensive: Having a renters insurance policy doesn’t have to cost a lot. In fact, according to the National Association of Insurance Commissioners, the majority of renter’s will pay a monthly premium between $15 – $30 a month, or roughly 0.65 cents a day.

Conclusion

Reviewing your renters insurance coverage is a great way to find out whether you are over insured or under-insured.

If you’d like some help understanding whether you have the right amount of coverage for your home, then you might be interested in our free no-obligation consultation.

We’ve helped renters just like you get the money they need to rebuild, replace or repair what’s been damaged by fire, theft or a natural disaster.

The information provided here is intended for informational purposes and should not be considered legal advice.

About Desir Law Firm

Attorney Leonard Desir is the founder of Desir Law Firm, a boutique insurance law office representing only insurance policyholders. We work with homeowners, renters, homeowner associations (HOAs), condominium associations, small and mid-sized businesses, and commercial property investors throughout the State of Florida.

When damage happens to your home or business, you have enough to worry about without having to worry about whether your insurance company will act in your best interests. Learn how Desir Law Firm can help you with your insurance damage claim. Contact us for a free, no-obligation consultation.

Florida law allows for the recovery of attorney’s fees and costs from your insurance company, if you prevail in a lawsuit. At Desir Law Firm, even if we do not prevail, you will not owe money to an attorney since our cases are taken on a contingency basis. It is truly a win-win situation to hire an insurance attorney to dispute a partial or complete insurance denial or partial payments.