Consumer Counselor
Insurance Information for Michigan Consumers
[FIS-PUB 0211] Michigan Department of Insurance and Financial Services | 877-999-6442 | www.Michigan.gov/DIFS [11/19]
Renters Insurance: A Smart Buy
If you are renting an apartment or a house,
renters insurance is one purchase you cannot
afford to do without. As a renter you may
think your personal belongings are covered
by your landlord’s insurance. However, the
landlord’s insurance typically covers structural
damage to his property and does not extend
to your personal property or protect you from
being liable for damage in your home.
Although your personal belongings are very
important to you, you may not think you have
enough property to insure or that you can
afford renters insurance. Your furniture,
electronic equipment, clothes, jewelry and
other personal belongings are the property
items that are covered under renters
insurance. However, if you cannot afford to
replace your possessions in the event of
perils such as fire, an explosion, bursting
water pipes or theft, you should strongly
consider purchasing renters insurance
coverage. Renters insurance is surprisingly
affordable.
Renters insurance provides coverage for your
personal property while you occupy a
dwelling owned by someone else. In a renters
policy you choose the amount of property
damage coverage you need based on what it
would cost to replace the things you own.
With renters insurance your personal property
is protected from many types of perils
including those previously mentioned as well
as lightning, windstorm, hail, riot, civil
commotions, vandalism, falling objects,
smoke and damage from a vehicle. Renters
insurance also provides personal liability
coverage protecting you from financial loss
due to claims made by others for incidents
occurring at your residence for which you are
held liable and additional living expenses.
A basic renters policy provides you with more
than just coverage for loss of property at
home.
You are also entitled to an
additional 10
percent of the amount of your policy's
coverage limit to cover property away from
your home. For example, if you have
$50,000 worth of personal property coverage,
you will automatically receive an additional
$5,000 in coverage on personal property lost,
damaged or stolen while it is anywhere else
in the United States or Canada.
In the event that you are forced to find other
living accommodations following the loss of
your rented apartment or home due to a fire
or other peril, a renters policy also covers
your
additional living expenses up to a
specified limit or for a specific amount of time
(e.g., six months) depending on the policy.
For example, if your rent is $500 per month
and your expenses for food and utilities
amount to $500 per month, your monthly
expenses total $1,000 per month. Also, the
renters policy you purchased provides you
with additional living expenses benefit of $350
per month for six months. After a fire you and
your family must move into a hotel which
costs $700 per month. Your utilities are
included but your cost for meals at
restaurants is $600 per month. Now, your
total living expenses is $1,300 per month,
$300 more than your regular monthly
[FIS-PUB 0211] Michigan Department of Insurance and Financial Services | 877-999-6442 | www.Michigan.gov/DIFS [11/19]
expense. Your renters policy would pay the
difference of $300 for six months.
A basic renters policy usually provides you
with
medical payments coverage for injuries
that may occur to someone else in your
rented dwelling or which may be caused by
you or a family member, and
liability coverage
in case someone sues you for damages
caused by your or a family member or which
occurs on your property.
For example, if a visitor slips on your rug and
breaks a leg, the medical payments coverage
in your renters policy would pay any medical
expenses up to the limit in the policy, usually
$1,000 per person. If he or she decided to
sue you, your liability coverage would provide
you with legal protection and pay the cost of a
settlement.
There are other important coverages in a
basic renters policy which protect you against
many kinds of financial losses. Ask your
agent to give you more details and shop
around for the lowest price. If you rent,
renters insurance is one purchase you cannot
afford to do without.
About DIFS
The mission of the Michigan Department of
Insurance and Financial Services is to ensure
access to safe and secure insurance and
financial services fundamental for the
opportunity, security and success of Michigan
residents, while fostering economic growth and
sustainability in both industries. In addition, the
Department provides consumer protection,
outreach, and financial literacy and education
services to Michigan citizens. For more
information please contact DIFS at 877-999-
6442 or visit www.michigan.gov/DIFS
