Many renters don’t realize the importance of renters insurance, and they assume that Landlord’s insurance covers them, which isn’t true. Landlord’s insurance only protects the structure of the building and covers its repair or replacement.
Therefore, if you’re going to rent a unit, renters insurance is the best way to protect you in the case of some life-altering event, such as fire or theft. A fire or theft can cause significant damage to your property, and the cost of replacement or repair can be devastating.
So, if you are still not sure why you must pay a little extra money each month to buy a renters insurance policy, here are some things to consider before renting a unit.
What Does Renters Insurance Cover?
Renters insurance is a type of insurance that helps protect your belongings in the event of damage or theft. It can also provide liability coverage if someone is injured while on your property. Most renters insurance policies will cover the cost of replacing your belongings up to a certain limit, as well as any damage caused by fire, smoke, water, and weather.
Some policies will also cover the cost of temporary housing if your home becomes uninhabitable due to a covered incident.
Who Needs Renters Insurance?
If you’re renting a home or apartment, you need renters insurance to protect your belongings from damage or theft. It also covers you if someone is injured while on your property.
If you’re a renter, you may be wondering if you need renters insurance. The answer is yes. Renters insurance is important because it protects your personal belongings in the event of a covered loss. How long does it take to get renters insurance? Not long; you can usually apply for a policy in 30 minutes or less.
Here’s how to get started with renters insurance:
- Shop around and compare rates from different insurers.
- Determine what coverage levels you need based on the value of your belongings and the amount of liability coverage you want.
- Get quotes and choose the policy that’s right for you.
- Make sure to read the fine print and understand the terms and conditions of your policy before signing up.
Reasons Why you Need Renters Insurance
Renters insurance provides great peace of mind, lifting considerable stress and weight off your shoulders. Here are some reasons to get it before renting a new place.
Renter’s Insurance is Affordable
Most tenants don’t consider purchasing renters insurance to avoid adding extra expenses, as they think it costs more than their possessions’ actual cost. However, renters insurance is very affordable and won’t break the bank.
Across the United States, the average cost of renters insurance is 15$ -30$ per month. It depends on some factors: where you live, what coverage you need, the size of the rented unit, and the deductible amount.
Additionally, if you have a car, you can bundle your renters policy with your car insurance and get multiple discounts from many insurance companies.
It Fills in Gaps in Landlord’s Insurance
Many tenants assume that landlord’s insurance covers them; unfortunately, this is a misconception. Building owners will get an insurance policy to protect their building and the physical structure of the building but not tenants’ personal belongings inside it. Therefore, you must purchase your own renters insurance policy to protect your belongings.
It Might be Required
While renters insurance is not mandatory, a growing number of landlords require it. Usually, landlords state in the lease if they require an insurance policy and how much coverage you need, so make sure to read it carefully.
By making tenants get their own renters’ insurance policy, landlords shift away some responsibility, and the tenants will be responsible for their belongings in the case of sudden disasters.
It Protects Your Belongings
The obvious reason is that renters insurance will protect your belongings If something happens to your apartment.
While insurance policies cover a long list of perils such as fire, wind storm, volcanos, theft, smoke, etc., they won’t protect you from a flood, earthquake, or other natural disasters. So, remember that when getting your insurance policy.
In case you need to take pictures of the damage caused to your rental property to make an insurance claim, you can use an online free image editor to enhance the images before submitting them.
When it comes to how insurance companies compensate your loss, there are two ways: actual cash value and replacement cost.
With actual cost value, you will get the item’s current value, considering the wear and tear over the years, so you will probably be paid less than the market value. At the same time, the replacement cost covers the total amount to repair or replace the item.
You’ll Be Covered Anywhere in the World
Your personal possessions will be protected anywhere you go, and the renters insurance covers them whether they are in your car or home or maybe with you as you travel.
So, if your laptop or favorite purse gets stolen, renters insurance will cover it, up to certain limits. You have to talk with the insurance company to get the exact details of your insurance policy.
It Covers Your Liability
Renters insurance provides excellent liability coverage, which covers not only you but also your guests, other people’s items you may borrow, and even neighbors! Liability coverage will pay for medical bills if anyone is injured while in your apartment or you accidentally injured someone.
Also, it will protect you from lawsuits if the injured person decides to sue you, and you will be protected from lawsuits’ budget-breaking expenses.
The coverage covers the damage you may cause to neighbors, such as flooding their apartment due to a broken water pipe or sewer drainage.
It Ensures you Have a Place To Stay
In extreme cases, such as fire or windstorm, the rented unit may be uninhabitable, and you will need to move temporarily somewhere else while the apartment is being repaired. The additional expenses, living expenses, or loss of use coverage will protect you.
Renters insurance will pay for hotel, food, and gas, and in case of a long repair process, it will cover renting a temporary place for you.
