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Renters insurance and why it is important

Renters insurance and why it is important

Have you ever pondered on what life would be like if you lost some or all of your electronics, gaming consoles, furniture, or the assortment of clothes in your wardrobe? Well, if you haven't, chances are you don't have renters insurance and perhaps have had little to do with it. We all wish for a blissful life with minimal damage to our treasured possessions. However, things can change in a blink of an eye and leave you stranded, with no place to call home, damaged electronics and household items, or a lawsuit after your friendly dog bites someone. 

Here are the top eight explanations of why we strongly encourage renters insurance as property managers. Read more and find the benefits of obtaining and maintaining renters insurance.

Protection of personal items

The fundamental purpose of renters insurance is to protect your possessions from unfortunate events such as theft, fire, and water damage. Often, we tend to downplay the value of the items in our household. If you take an inventory of each room or section of your house, you will discover how costly it can be to restock all the items. Remember that you did not buy all your belongings in a single day or month; it probably took you a few years. It is necessary that you get renters insurance because if the worst happens and you lose your entertainment units, kitchen appliances, mattresses, laptops, washing machines, furniture, or smartphones, the insurance company will replace them for you. 


In the event that a natural disaster such as lightning affects your house, the renters' insurance will come handy. If the situation demands you first move out for the place to be repaired, the insurance agency takes responsibility for the relocation process and the costs associated with it.

Low premiums

Renters insurance is affordable, with the majority of the policies demanding a minimum of $15 and a maximum of $30 from you per month. Even though you might consider buying the premium with the most negligible charges, be sure to check out the coverage options before you buy the policy. When you perceive that the renters policy will not suffice for you and your household, consider using an umbrella policy or include other additional covers offered by the insurance company. 

Liability coverage

Let's say that someone visiting your rental unit gets bodily harm from a fall. How much money will it cost if the person sues and you have to take them to the hospital? Besides, what would happen if your dog bit a child? Are you in a position to foot the expensive medical bill of caring for a dog bite? Life in rental properties can be daunting, but with a renters insurance policy, the extra expenses that you would spend on lawsuits and medical bills will be funded by your insurance agency.

Replacement Cost

While purchasing a renters insurance policy, you are confronted with the decision of choosing one that will replace your items or reimburse you the cash value of the damaged items. Actual cash value policies account for the depreciation of the item being replaced; that is, the insurance company gives you the cash equivalent of what you will get if you were to sell the item in the market. On the contrary, replacement cost policies replace an item by releasing payments that match its current price. Although a replacement policy is slightly higher than an actual value plan, you will receive more cash for the replacement of your personal belonging.

Additional living expenses

Renters insurance makes it possible for you to live somewhere else as you wait for the property management team to resolve the issue. The additional living expenses that your chosen renters insurance company incur are based on hotel bills, the cost of eating out, temporary rental fees, and other costs you incur as you wait for your unit to be repaired. Primarily, the additional expenses are the costs you are likely to incur other than those you incur leading an everyday life in your house.

Off-premise coverage

Renters insurance also pays you for incidences that happen when you have travelled. For instance, if your personal belongings, such as a smartphone or watch, get stolen when you are away, the policy will pay for the replacement. Besides, the policy will also cater for persons that you might accidentally harm when maybe you are skiing or playing golf.


Renters insurance policies can also offer you competitive discounts, particularly if you purchase other policies from the agency. Besides, if you remain loyal to the insurer for a prolonged period, they will give you discounts. Another consideration for a discount is based on your age. That is, all persons who are above 55 years are eligible. Also, if you have an outstanding credit score, your chances of receiving a discount increase. Your chances of a discount are high if you have installed additional security measures, including deadbolt locks, a security system, or smoke detectors. What's more, you can reduce the cost of the premium by ensuring you have the highest deductible you can comfortably afford.

What are the specifics I need to understand before getting renters insurance?

What are the specifics I need to understand before getting renters insurance?

If you live in Coos Bay, Oregon, the law allows the property owner to request renters insurance in alignment with ORS 90.222. You can name the owner to have an interest in the policy. It ensures that they are made aware in the event that you delay paying for the policy.  Learn more from the state of Oregon at

To sum it up

Getting a renters insurance policy cushions you from additional costs that will follow if your household items were damaged in a natural disaster or theft. The policy not only replaces your belongings but also makes it possible to cater for related liability issues such as lawsuits or expensive medical bills after bodily harm. Besides, a renters insurance policy saves you the stress of constantly worrying about the valuable items in your house and how life will possibly turn out if you lose all your possessions to a fire or electrical issue.

When you hire a property management company to assist you in your investment, you are getting more than your free time back. You are getting the best experience for both you and your tenants.

Oregon Bay Properties, LLC offers tenant screening, move-in/move-out reports, maintenance, rent collection, eviction services, and more. Contact OBP and see how we can assist with your rental properties' day-to-day tasks, so you don't have to.