PBC Insurance Basics: Renters Insurance

If you're renting an apartment, home, or condo in Oregon, you might assume you don't need insurance. Should anything structural happen to the building, the property owner is responsible for repairing the damage under their policy. BUT they aren’t responsible for your belongings. The owner of the property won't be responsible for replacing them if you lose your rental to a fire or robbery. So, if you're a renter, it's paramount that you have renters insurance to replace your personal property. Relying on government services to cover them may leave you out in the cold. Some landlords may require you to have rental insurance as part of your agreement, while others may leave it up to the tenant’s discretion.^1,2

Renters Insurance Basics

Renters insurance works much like a homeowners insurance policy. Renters insurance won't cover dwelling or structural damage but instead covers the cost to replace your belongings, loss-of-use coverage to your living space, and personal liability damages should someone get injured in your apartment. When one of these unexpected events occurs, you would file a claim with your renter’s insurance company and, depending on whether you have a deductible, be eligible to receive benefits after that is taken care of.^1,2

What Will Renters Insurance Cover?

There are specific types of damage that renters insurance covers. You’ll want to read your policy carefully to ensure that your belongings are properly insured. Typical renters policies cover events like:

• Fire
• Smoke damage
• Falling objects
• Explosions
• Theft
• Riots
• Lightning and electrical damage
• Snow, sleet, and ice^1,2

What Renters Insurance Does Not Cover

There are specific events that your renters policy probably doesn't cover. However, if you live in an area affected by floods or earthquakes, for example, you should be able to add an endorsement at an extra cost that covers these events.

A basic renters insurance typically doesn't cover:

• Flood
• Earthquake
• Damage from pets
• Personal injuries
• Damage from pests
• Car damage
• Sinkholes
• Terrorism^1,2

Why Do You Need Renters Insurance?

There are many unexpected scenarios in which renters insurance will make your life easier. For example, if you accidentally leave your bathtub running and flood your downstairs neighbor's apartment, your landlord probably will not cover the damages. Paying for the repairs out of pocket can become quite costly and could be an additional financial burden to you.²

You also probably own more possessions than you think. If you take an inventory of everything you own and the price you paid for it, you'll quickly discover that you own quite a lot. Replacing electronics can become especially costly, and you don't want to have to pay out of pocket to replace everything. Your renters insurance will also cover more than a stolen TV. Should you have your laptop stolen while you're traveling, your renters insurance policy will also pay to replace it.²

Cost of Renters Insurance

One of the misconceptions about renter’s insurance is that it's too expensive to set up a policy. That couldn’t be further from the truth. According to Oregon's Division of Financial Regulation, the average cost of renter’s insurance is between $180 and $360/year, which is quite a bit less than some streaming services out there. If you can bundle your renters insurance with your auto insurance policy, you may receive a discount. Additional discounts may be provided if your apartment has smoke detectors, built-in sprinklers, and other safety measures.³ 

Considering renters insurance presents a great opportunity to connect with a local, independent insurance agent who can compare pricing, discounts, and differences in policy coverage. Feel free to connect with one of our agents by submitting your information here: