Renters Insurance: Why You Need It

August 04, 2020

There are two big myths about renter’s insurance. One is that it’s too expensive and the other is that it’s not needed.

Not having renter’s insurance is a pretty big gamble considering that without it, you face the cost of replacing your personal belongings after an event such as fire or theft. What’s more, you could face the prospect of defending yourself in a lawsuit because of some accident for which you might be held legally responsible, whether it happened where you live or elsewhere.

In many cases, for less than a couple hundred dollars a year you can protect your valuables, like your furniture and clothes, from loss by fire, theft, wind and water damage or other covered hazards.

Renters insurance also gives you personal legal liability coverage and medical payments to others who are accidentally injured while in your home or apartment or elsewhere if the injuries are caused by your actions. And, if you are forced to live elsewhere because of damage to your residence due to a covered loss, renters insurance covers additional living expenses.

Please take the time to evaluate your personal property inventory. What would it cost you to replace all of your belongings? You’d be surprised how much it would cost to replace all your furniture, clothing, electronic equipment and other personal items. An insurance agent can help with this by estimating the total value of your property.

Remember, you may not own the building in which you live, but you still need to have insurance to protect your property in the case of fire, theft or other hazards.

We strongly recommend that you purchase renter’s insurance to protect yourself in the event of a loss.

Here are a few telephone numbers of local insurance companies. These are for reference only and are not being provided as an endorsement by Lincoln.

USAA                    800-534-8722

Geico                    800-207-7847

State Farm            800-732-5246

Allstate                  800-255-7825

RENTER’S INSURANCE FAQs

Q: When does the renter’s insurance provided by LMH end?

A: Personal property coverage (renter’s insurance) will no longer be provided by Lincoln Military Housing effective September 1, 2020.  

Q: I thought renter’s insurance was a part of my BAH paid to Lincoln?

A: In 2015, the DoD eliminated the renters insurance component from the Basic Allowance for Housing (BAH) program. Lincoln Military Housing (LMH) continued to provide renters insurance even though the money was no longer being funded by the BAH.  

Q: Do I need to have my own renter’s insurance policy?

A: LMH has always encouraged residents to obtain their own renters insurance policy in addition to that of which LMH provided.  USAA has offered to host several upcoming webinars to educate military families on the advantages of having a renter’s insurance policy.

Q: If I acquire my own personal property insurance, do I need to notify Lincoln Military Housing?

A: Although it is not a requirement, we do appreciate notification of your policy so that we can provide assistance in the event of an emergency.

Q: What is the advantage of Renter’s Insurance?
A: Renters insurance gives you personal legal liability coverage and medical payments to others who are accidentally injured while in your home or apartment or elsewhere if the injuries are caused by your actions. And, if you are forced to live elsewhere because of damage to your residence due to a covered loss, renters insurance covers additional living expenses.

Q: Why is LMH no longer funding renter’s insurance? 

A: In 2015, the DoD eliminated the renter's insurance component from the Basic Allowance for Housing (BAH) program.  Lincoln Military Housing elected to continue coverage at no cost to its residents despite the decrease in BAH from the DoD and the notice from the Navy removing the requirement from the program.  After reviewing the policy coverage, it was determined that our residents would be better served with a policy provided by a third party company of their choosing and LMH will discontinue coverage, which is also consistent with the local rental markets who do not bundle renters insurance in their leases. While there will be some leases remaining with property contents coverage, those residents that are impacted were provided with notification on July 30th, 2020 of the cancellation. Residents have always been encouraged to obtain their own renter's insurance policy to ensure coverage of all personal property.   

Q: What impact will removal of renters insurance have on Basic Allowance for Housing rates? 

A: On average, the cost of renter's insurance contributed about $20/month to the Basic Allowance for Housing rates, with the actual amount varying by grade and location. Members who obtain renter's insurance will now need to budget for this expense separately.

Have a question not listed above?  Email LMHComms@lpsi.com 

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At Lincoln Military Housing, Every Mission Begins at Home®

Our mission is to provide premier homes and outstanding management and maintenance services to military families, who deserve nothing less. We strive to understand the changing needs of military families and consider it our duty to improve the quality of life for those who live in our communities.

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