{"id":94694,"date":"2025-02-18T01:31:31","date_gmt":"2025-02-18T01:31:31","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/insurance\/buying-renters-insurance-through-the-leasing-company-read-this-first\/"},"modified":"2025-02-18T01:31:31","modified_gmt":"2025-02-18T01:31:31","slug":"buying-renters-insurance-through-the-leasing-company-read-this-first","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=94694","title":{"rendered":"Buying renters insurance through the leasing company? Read this first"},"content":{"rendered":"


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We\u2019ve run into several situations lately where a customer moves into an apartment complex and buys the renters insurance provided through the complex. I\u2019m all for convenience, but after discussions with other agents, I\u2019ve discovered that these policies may lack some critical coverage items. And as an insurance agent, that\u2019s where I start to have problems. <\/p>\n

So, before you buy the renters insurance<\/a> offered through the leasing company, take a quick read at what these policies may lack (and why that is bad for you) and what questions you should ask to protect yourself.<\/p>\n

Many of these policies only cover liability<\/h2>\n

Years ago, apartment complexes began requiring renters insurance of its tenants for one reason- to protect them from liability due to the actions of the tenant. For example, a tenant who lives on the 3rd floor throws a party and one of the guests falls off the balcony onto the ground. Who\u2019s responsible? The tenant who threw the party. But who will get named in a lawsuit? Both the tenant and the apartment complex (because that\u2019s where it took place). The idea here is for the renters insurance to respond FIRST and pay, with the landlord\u2019s insurance secondary. <\/p>\n

Important question to ask: Does this policy ONLY cover liability? <\/h5>\n

A typical renters insurance policy includes coverage for liability and personal property (AKA your stuff).<\/p>\n

The liability coverage is often the lowest amount available<\/h2>\n

So for most of these renters policies, $100,000 for bodily injury and property damage to others is the lowest amount available. So this is what is offered. However, should you buy a renters policy on your own, you can increase your limit to $300,000 (the minimum we offer on all our policies), $500,000 or perhaps $1 million. And get this: the premium difference is only a very few dollars. I\u2019m talking like $20-30 a year between each level. <\/p>\n

So when that balcony accident occurs, how far do you think $100,000 will get you? And keep in mind once the $100,000 is paid by the insurance company, you\u2019re on the hook for the rest.<\/p>\n

Important question to ask: Am I able to buy more liability coverage?<\/h5>\n

Is the liability coverage limited to ONLY your apartment or does it extend elsewhere?<\/h2>\n

A couple classic examples:<\/p>\n