Renters Insurance: Why You Need It

August 04, 2020

Updated February 22, 2021

Reading Time 3 Minutes, 5 Seconds 

 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 your actions cause the injuries. 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 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 renter's insurance component from the Basic Allowance for Housing (BAH) program. LMH continued to provide renters insurance even though it was no longer funded with BAH.  

Q: If I acquire property insurance, do I need to notify LMH?

A: Although it is not a requirement, we do appreciate your policy notification to assist in the event of an emergency.

Note: Joint Base Lewis McChord Residents are required to maintain a policy of liability insurance issued by an authorized insurance company. You must furnish proof of insurance to us on or before your move-in date and, you must continue to provide evidence of Coverage throughout your residency.

Required Coverage & interested Party Personal Liability: $100,000

Interested Party:

Lewis-McChord Communities, LLC

PO Box 3687

Coppell, TX 75019

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 your actions cause the injuries. 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. LMH will discontinue coverage, which is consistent with the local rental markets that do not bundle renters insurance in their leases. While some leases remain with property contents coverage, those residents that are impacted were provided with notification on July 30, 2020, of the cancellation. Residents have always been encouraged to obtain their own renter's insurance policy to ensure all personal property coverage.  

Q: What impact will the 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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