Reasons To Get Renters Insurance: The Benefits of Renters Insurance
If you rent an apartment or a house, you’ll need insurance to protect your belongings (reasons to get renters insurance). The property insurance policy of your landlord covers losses to the building itself, whether it’s an apartment, a house, or a duplex.
However, your personal property and certain liabilities, on the other hand, are only covered by a renters insurance policy that you, as a tenant, must find and pay for.
According to the most recent figures, while 95% of homeowners have homeowners insurance, only 41% of renters have renters insurance.
What is Renters Insurance?
Renters insurance covers the costs of unexpected personal property damage, theft, and legal liability. Anyone renting an apartment, condo, home, or other living space can purchase this coverage. Although the coverage is similar to that of homeowners insurance, there are some key differences:
- Renter’s insurance does not cover the structure, or dwelling, where the tenant lives. Building damage is the landlord’s responsibility and is most likely covered by a landlord insurance policy.
- Renters insurance is significantly less expensive than homeowners insurance.
Benefits of Renters Insurance: Reasons To Get Renters Insurance
Why are so few renters insured? One explanation is that many people mistakenly believe they are covered by their landlord’s insurance policy. Another reason is that people overestimate the worth of their possessions. If you add up the value of your clothing and electronics, it won’t be long before you’re in the thousands of dollars.
One more frequently overlooked reason is liability: If a friend, neighbor, or pizza delivery person is injured in your home, they may sue you. Even if you thought you didn’t need insurance, here are six compelling reasons why you should get one.
Reasons To Get Renters Insurance
Do you live in a rented house or apartment? Renters insurance covers your belongings against loss, damage, or destruction caused by burglaries, fires, tornadoes, and other covered events. Furthermore, renters insurance protects your liability (as well as your money) if someone is injured in your rental home or apartment.
Take a look at the top reasons why you should get renters insurance.
1. It’s Relatively Affordable: Reasons To Get Renters Insurance
According to the National Association of Insurance Commissioners, the average renter’s insurance policy will cost $15 to $30 per month in 2022 (latest figures) (NAIC). Your actual cost will be determined by factors such as the amount of coverage you require, the type of coverage you select, the amount of your deductible, and where you live.
2. Your Landlord May Require It
The structure and grounds are covered by your landlord’s insurance, but not your belongings. A growing number of landlords are requiring tenants to obtain their own renter’s insurance policies, and they will expect proof of coverage. Reasons To Get Renters Insurance!
Your landlord may be able to assist you in finding or obtaining coverage. This could be the landlord’s idea or an “order” from the landlord’s insurance company. The idea is that by covering the tenants, some of the responsibility can be shifted away from the landlord.
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3. It Covers Losses to Personal Property
A renters insurance policy covers personal property losses such as clothing, jewelry, luggage, computers, furniture, and electronics. Even if you don’t have much, it can quickly add up to far more than you realize, and far more than you’d want to pay to replace everything. Reasons To Get Renters Insurance!
Renter’s insurance covers a surprising number of perils (Reasons To Get Renters Insurance). A standard HO-4 policy designed for renters, for example, covers personal property losses from perils such as:
- Damage caused by aircraft
- Falling objects
- Damage caused by vehicles
- Fire or lightning
- Riot or civil commotion
- Vandalism or malicious mischief
- Weight of ice, snow, or sleet
- Volcanic eruption
- Windstorm or hail
- Damage from water or steam from sources including household appliances, heating, plumbing, air conditioning, or fire-protective sprinkler systems
However, flood and earthquake losses are not covered by standard policies. These perils necessitate the purchase of a separate policy or rider. A separate rider may also be required to cover wind damage in hurricane-prone areas.
How To Buy Homeowners Insurance: Homeowners Insurance Guide
4. It Provides Liability Coverage: Reasons To Get Renters Insurance
Standard renter’s insurance policies include liability coverage as well. This protects you if someone is injured in your home or if you (or another covered person) inadvertently injure someone. Up to the policy limit, it pays any court judgments and legal expenses. Reasons To Get Renters Insurance
Most policies provide at least $100,000 of liability coverage and a smaller amount for medical-payments coverage. If necessary, you can request (and pay for) higher coverage limits.
5. It May Cover Additional Living Expenses
If your home becomes uninhabitable due to one of the covered perils, your renter’s insurance policy may cover “additional living expenses,” such as the cost of temporarily living somewhere else, food, and other expenses. Check your policy to see how long it will cover additional living expenses and if it has a cap on how much the company will pay.
6. Renters Insurance Covers Your Belongings When You Travel
Renter’s insurance protects your personal belongings, whether they are in your home, car, or traveling with you. Your belongings are protected against theft and other covered losses wherever you travel. Check your policy or ask your insurance agent for clarification on what “other covered losses” are. Reasons To Get Renters Insurance!
7. You’re not covered by your landlord’s insurance
Many tenants believe that their landlord’s insurance will protect them, but this is not true. The landlord, as the owner of your rental home or apartment building, has homeowners insurance that covers the physical structure but not your belongings inside.
- Renter’s insurance is required when renting a home to cover your personal belongings.
- Landlords have property insurance, but it only covers the building, not your personal belongings.
- Many renters do not buy renter’s insurance because they do not believe it is necessary or believe they are covered by their landlord’s policy.
- Your landlord might require you to buy it.
- Renter’s insurance is relatively inexpensive.
Is Renter’s Insurance Really Necessary?
Yes. Renters insurance is usually worthwhile if you can afford it. When you travel, it will protect your belongings, provide liability coverage, and may cover your personal items. Renter’s insurance also protects you from a wide range of perils. Reasons To Get Renters Insurance.
How Much Does Renter’s Insurance Cost?
According to the National Association of Insurance Commissioners, it could cost as little as $15 to $30 per month.
What Are the 3 Things Covered by Renters Insurance?
Clothing, electronics (including computers and tablets), and furniture are typically the basic 3 things covered by renters insurance.
How much Renters Insurance do you Need?
There is no one-size-fits-all answer, but to determine how much renters insurance coverage you require, consider your specific needs for personal property, loss of use, medical payments, and liability coverage. Consider your Extra Coverage options for your most valuable items. Reasons To Get Renters Insurance.
What does renters insurance not cover?
Renters insurance will not protect you from all risks because it only covers personal property and liability. Property damage caused by floods, for example, will not be covered, and liability coverage for events involving dangerous dog breeds may be excluded as well. Coverage for high-value items, such as jewelry, may be limited.
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