If you rent a home or an apartment, you need a renters insurance policy that covers your belongings. It is important to note that renters insurance covers different claims compared to landlord’s property insurance. The latter covers losses to the building, not to your belongings. On the other hand, renters insurance covers any damage to your personal belongings, preventing losses.
Given that the two insurance policies carry significant importance, only homeowners insurance policy seems to be taken seriously. About 95% of homeowners have homeowners insurance, while only 41% of renters have renter’s insurance. Perhaps, discussing the benefits of renter’s insurance will help enlighten you on why you should purchase this policy. Here are six good reasons why you should get renters insurance.
It Covers a Wide Range of Losses
One of the crucial benefits of renter’s insurance is that it protects against damage to your personal property. These could be your jewelry, clothes, computers, luggage, electronics, and furniture. Covering damage against such items is essential because they could cost a lot of money.
Even if you don’t own much, damage to any items means you will have to replace them, which costs you money. However, with a renter’s insurance policy, you don’t have to worry about that. The policy covers a wide range of losses, making it very comprehensive. A standard renter’s insurance covers against things like; damage caused by vehicles, damage caused by aircraft, explosions, among others.
It is important to note that damage caused by earthquakes and floods is not covered under renter’s insurance. If you want to protect that, you need a separate policy that covers such losses. If you live in areas prone to hurricanes, you will need an individual policy that explicitly covers that.
You should know that renter’s insurance doesn’t cover losses caused by intentional acts or negligence as a renter. For instance, if you smoke a cigarette, accidentally fall asleep and cause a fire, the policy won’t cover the damages. Understanding that will help you know what the policy covers and what it doesn’t.
It is Very Affordable
Renter’s insurance is affordable; another reason should consider getting it. With only $175 a year, you will get a comprehensive renter’s insurance policy. This is a reasonable price considering what it covers. The actual cost of a renter’s insurance depends on several factors. For instance, the type of coverage you choose could influence the actual price.
If you want comprehensive insurance, you will have to pay more. Another factor affecting the insurance cost is the amount of your deductible. Besides, where you live plays a crucial role in determining the cost of insurance. This is because some states have a minimum amount of money you can pay for renter’s insurance. If you live in such states, you will have to pay a certain amount of money for renter’s insurance.
Offers Liability Coverages
A standard renter’s insurance policy includes liability coverage. This is crucial because it provides protection when a person sustains injuries inside your home. It also protects if you accidentally cause damages to another person. The liability coverage pays any legal expenses and court judgments where applicable.
Generally, policies provide a minimum of $100,000 in liability coverage. Smaller amounts are used to cover medical costs and other related coverage. With this policy, you can request higher coverage limits if you want more comprehensive coverage.
Landlords Might Need It
Another reason you should get renter’s insurance is that your landlord might need it. Landlord’s insurance covers the building, but not your belongings. For that reason, most landlords require tenants to get renter’s insurance that protects their belongings. You will have to get this insurance before being allowed to rent a house.
Apart from the landlord telling you to get this policy, it could also be an order from the landlord’s insurance company. This is important because when tenants are covered, the landlord’s responsibility is shifted. If you have a problem getting insurance, seek assistance from your landlord.
It Covers Belongings When Traveling
Whether traveling, in your car, or in your home, renter’s insurance covers your personal belongings. This makes it very important because it protects your possessions against losses no matter your location. However, it is important to check with your insurance company and understand what it covers. This will also give you an idea of how much it costs.
Covers Additional Living Expenses
Another good reason you should get renter’s insurance is that it covers additional living expenses. For instance, if your home becomes uninhabitable due to one of the covered perils, the policy will cover the cost of living somewhere else temporarily until your house is fixed. The policy also covers food expenses while staying in your temporary home. It is important to confirm with your insurance company the kind of additional expenses it covers.