If you’re renting an apartment or home, you’ll need an insurance policy to cover your belongings. Your landlord’s property insurance policy covers losses to the building itself. Your personal property and certain liabilities, however, are covered only through a renter’s insurance policy that you, as a tenant, have to find and pay for.
Why do so few Kenyan renters consider insurance? One explanation is that many Kenyans incorrectly assume they are covered by their landlord’s policy. Another reason is that people underestimate the value of their belongings. If you add up the value of just your clothing and electronics, it probably wouldn’t take long to get into the thousands of shillings.
One more often overlooked reason is a liability: If someone is injured in your house, they could sue you. Even if you thought you didn’t need insurance, here are good reasons why you should get a renter’s insurance policy.
1. It’s affordable.
The average renter’s insurance policy is very affordable. Your actual cost will depend on factors, including how much coverage you need, the type of coverage you choose, the amount of your deductible and where you live.
2. It covers losses to personal property.
A renter’s insurance policy protects against losses to your personal property, including clothes, jewellery, luggage, computers, furniture, and electronics. Even if you don’t own much, it can quickly add up to a lot more than you realize – and a lot more than you’d want to pay to replace everything.
Renter’s policies protect against a surprisingly long list of perils:
- Damage caused by aircraft
- Damage caused by vehicles
- Explosion
- Falling objects
- Fire or lightning
- Riot or civil commotion
- Smoke
- Theft
- Vandalism or malicious mischief
- Volcanic eruption
- Weight of ice, snow or sleet
- Windstorm or hail
- Damage from water or steam from sources including household appliances, plumbing, heating, air conditioning or fire-protective sprinkler systems
Note: Losses resulting from floods and earthquakes are not covered in standard policies. A separate policy or rider is required for these perils. In addition, a separate rider might be needed to cover wind damage in areas prone to hurricanes. And renter’s insurance policies don’t cover losses caused by your own negligence or intentional acts. For example, if you fall asleep with a lit cigarette and cause a fire, the policy most likely will not cover the damage.
3. Your landlord might require it.
Your landlord’s insurance covers the structure itself and the grounds, but not your belongings. A growing number of landlords require tenants to purchase their own renter’s insurance policies, and they’ll expect to see proof. This could be the landlord’s idea, or it could be an “order” from the landlord’s insurance company. The idea being that if the tenants have covered themselves, some responsibility can be shifted away from the landlord. If you need assistance finding or obtaining coverage, your landlord may be able to help.
4. It provides liability coverage.
Liability coverage is also included in standard renter’s insurance policies. This provides protection if someone is injured while in your home or if you (or another covered person) accidentally injure someone. It pays any court judgments as well as legal expenses, up to the policy limit.
Most policies provide at least kes 1,000,000 of liability coverage, and between kes 10,000 and kes 50,000 for medical-payments coverage. You can request (and pay for) higher coverage limits. If you need more than kes 3,000,000 of liability coverage, ask your insurance company about an umbrella policy, which can provide an additional 1 million worth of coverage for about kes 15,000 to kes 30,000 a year.
5. It covers your belongings when you travel.
Renter’s insurance covers your personal belongings, whether they are in your home, car, or with you while you travel. Your possessions are covered from loss due to theft and other covered losses anywhere you travel in the world.
6. It may cover additional living expenses.
If your home becomes uninhabitable due to one of the covered perils, your renter’s insurance policy may cover “additional living expenses,” including the cost associated with living somewhere else temporarily, food and more.
The Bottom Line
Renter’s insurance provides coverage for your personal belongings, whether they are in your home, car or with you while you’re on vacation. In addition, renter’s insurance provides liability coverage in case someone is injured in your home or if you accidentally cause injury to someone.
Be sure you understand what your policy covers, and ask your agent about available discounts, deductibles and coverage limits. For example, be sure you know whether your insurance provides replacement cost coverage (RCC) for your personal property or actual cash value (ACV).