By Joy Peck, Executive Director
Landlord Association of the Inland Northwest
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One question that both tenants and landlords ask is whether a renter needs to insure their own property. The short answer is yes.

If you are a renter, imagine for a moment that you have just returned home to find there has been a burglary or fire that has left you without a TV, furniture, clothing, jewelry, and other belongings. How will you replace all of that? And if you can’t stay there, where will you go and who will pay for that?

Another scenario could be that your dog has an once-in-a-lifetime moment and bites someone or your party guests cause some damage. Or your toaster oven or the beautiful candle display starts a fire that impacts other units. In these cases, it isn’t just a matter of replacing your possessions, but dealing with the losses or claims of others against you.

Tenants often mistakenly believe that their landlord carries insurance which covers them and all their belongings, so fewer than 30 percent of all renters have some kind of insurance to protect themselves. But the owner’s insurance covers the building and liability for the landlord. Landlords do not know the contents of their tenant’s units and it would be too intrusive for them to inventory each apartment or house they rent out, so the contents of individual units are not included in the landlord’s policies.

Renters insurance covers only the tenant’s own belongings and the tenant’s liabilities, which is why the cost of the policy so low. Most Renters Insurance costs typically between $8 -$15 a month for around $25,000 worth of coverage and personal liability coverage of about $300,000, enough to give real protection for very little money.

Most big general insurance companies offer Renters Insurance and a quick check of the phone book or going online will reveal a large number of choices. The payment may be made in installments in most cases, and there may be discounts for apartments or houses that have deadbolt locks, a smoke alarm, fire alarm, sprinkler system or fire extinguisher present and in working order.

A frequently-asked question is whether or not landlords can require that their tenants have renters insurance. In Washington State, any landlord or property management company CAN require that their tenants have renters insurance for the entire length of their lease or agreement, but may not require a specific company, agent or amount of coverage.

A Renters Policy covers much more than just fire or water damage. It may cover stolen or damaged personal items, property losses even when off premises (such as items stolen from a car or while traveling), items lost during a mugging, forged checks or stolen credit cards. It may also cover personal liability for non-auto bodily injury claims brought by others. Should your rental unit become unlivable due to water damage, smoke or fire damage, tenants would receive some living expenses, too.

One decision to make is whether you want a policy that covers actual cash value or replacement cost. Actual cash value coverage will pay only for what the item(s) were worth at the time they were damaged or stolen. Replacement cost coverage will cost a bit more in premiums, but will also pay out more if you ever need to file a claim. Be sure to take an inventory of all furniture, electronics, jewelry, and kitchen items. If something isn’t on the inventory, it’s unlikely the insurance company will pay for its replacement.

Just remember that when it comes to disasters, renters face most of the same risks as homeowners, and should protect themselves accordingly.

Landlord Association of the Inland Northwest

3 S. Washington Street, Spokane, WA 99201

(509) 535-1018