Do I Need a Separate Renters Insurance Policy in NC?

Once you understand the difference between renters insurance and personal insurance in NC, you’ll have a clearer idea of the plan you should pursue. The North Carolina Department of Insurance helps state residents navigate the complex world of insurance. Here are important points to know about the differences between renters and personal insurance.

Personal Vs. Renters Insurance

Suppose you move into a new apartment and want to make sure your personal belongings are financially protected; will you choose renters or personal insurance in NC? You can have both policies to ensure that all your personal assets are covered, although you may also get by with one or the other, depending on your lifestyle and how you limit risks.

Personal insurance is a broad category that includes coverage for auto, disability, life, and homeowners. It includes liability coverage for damage or injury caused to others. It’s used to protect individuals and families from financial loss. The coverage pays the costs for death, injury, or loss of property.
Renters insurance covers much of the same areas as personal property and personal liability. Additionally, renters insurance can pay your living expenses if you are forced to abandon your rental residence due to damage. Many landlords now require tenants to carry rental insurance as a precaution to ensure they get the rent even if their tenant is unable to work.

Different Types of Coverage Under Renters Insurance

Don’t be overwhelmed by the vast number of niches that exist in the insurance industry. You may only need certain coverage types to sufficiently protect your assets. The key to avoiding liability claims is to have the right insurance coverage in place.

Sometimes people are confused about different types of insurance or don’t read the policy carefully and end up with a plan that doesn’t cover what they expect. Here are some of the different types of coverage offered in a standard renters insurance plan:

  • Personal liability
  • Personal belongings
  • Loss of use (living expenses for alternative housing)
  • Cyber liability
  • Water damage
  • Wind or hail damage
  • Damage caused by pets

The following are items not offered in a renters plan:

  • Liabilities associated with roommates
  • Dwelling/structure
  • Flood
  • Earthquake
  • Intentional damage

Before you sign up for a renters insurance plan, ask your landlord what their commercial property insurance plan covers relative to your situation. Chances are, it only covers the structure of the building and not the contents within it. Renters insurance does cover most of your belongings. You may need special “add-on” coverage for certain items that are difficult to appraise, such as antique jewelry and fine art collectibles.

Tips to Maximize Personal or Renters Insurance

  • Ask your insurer about special discounts
  • Share an inventory list of your possessions with your insurer
  • Keep receipts for valuable items you purchase
  • Take photos or videos of your possessions
  • Lower monthly bills by raising your deductible
  • Add coverage extensions based on your personal needs
  • Let your insurer know ways in which you are reducing risks

Knowing the difference between renters and personal insurance in NC will help you determine the type of coverage you need. Contact our agents at Pittman Insurance Group to better understand renters or personal insurance coverage.

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