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Do I Need Renters’ Insurance?

The ongoing cold snap in Northern Colorado makes us think about a common question that tenants often ask.  Do I need renters insurance?  Many of our tenants ask this question because they are trying to budget and determine the monthly expense.  We always leave the decision up to the tenants but here is why we think renters insurance is a great idea.

Take the current cold snap as an example of how renters insurance can benefit tenants.  Let’s assume for this example that you are in a condominium complex in Fort Collins.  Your condo is located on the second floor of a three-story building.  Your neighbor above you is not home and their heat has been set too low for the sub-zero temperatures.  During the night, their kitchen sink pipe begins to freeze and as it freezes, it expands.  When it expands enough, the pipe bursts and water escapes.

As you sleep in the condominium below, you have no idea what is going on above you.  As water fills the condominium above you, it begins to flow through the walls and into your unit.  By the time you know what is happening, you have an inch of water throughout your unit.  Now, the real problem at this point is that you have no way to stop the water flow that is entering your unit.  By the time the fire department or authorities arrive, you have massive water damage to your unit and more importantly, your personal property is damaged.  Anything that touched the floor now has water damage.

Once the water has been extracted and the pipe repaired, you need to determine how you are going to repair or replace your property.  This is where renters insurance becomes vital.  Unfortunately, your landlord’s policy or the owner’s policy for the unit above you generally only covers the building where you live.  As a result, your personal belongings are not covered.  However, if you have renters insurance, you can rest easy that your property will be replaced.  Another great thing about renters insurance that many forget about is that it typically has a clause that provides you paid alternative living options while your unit is repaired.  This is another great benefit of a policy.

So, for an insurance policy that you can typically pay for with your daily pocket change, we think that renters insurance is critical when being a renter.  It provides tenants with a lot of coverage for a very small amount.  If you are a tenant looking for a rental or if you are a property owner in need of property management services, please contact us for more information.  Real Property Management of the Rockies would be honored to be your trusted property management partner.  We serve Fort Collins, Loveland, Windsor, Timnath, Wellington and the rest of the Northern Colorado area.

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.

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