If you’re renting a home, apartment or condo it’s important that you take precautions in the event something happens and your belongings are destroyed or stolen. That’s why you need renters insurance.
Many renters are under the impression that their landlord’s property insurance policy will cover anything lost in the event of a disaster. That policy, however, only covers building losses, not any personal losses you might suffer. Renters insurance will cover your personal belongings.
The majority of homeowners have insurance policies. On the other hand, only about 37 percent of renters have renters insurance. A likely explanation for that is that many renters assume they are covered by the landlord’s policy. There’s also the fact that most people have no idea what their personal property is worth so they don’t worry about insuring it.
Renters insurance is a necessity for anyone leasing a property. Following are the most important reasons you should have it:
- Personal property losses are covered. Renters insurance covers clothing, furniture, electronics, jewelry and luggage. This includes losses from explosions, fire/lightning, smoke, falling objects, theft, vandalism, damage from vehicles or aircrafts, riots, hail/windstorms, volcanic activity, water damage and weight from snow/ice buildup. Of note, damage from earthquakes and flood is not covered under renters insurance and requires a separate policy.
- Liability coverage is part of the policy. Should someone be injured while in your home or if they are accidently hurt by you in the home, it will be covered.
- You’re covered even if you’re not home. Your personal belongings are covered by renters insurance when you’re traveling.
- Your landlord may require you have it. Many landlords demand renters insurance and they will generally ask to see the policy.
- It could cover other living costs. If you’ve experienced some sort of loss and can’t live in your home, your policy could cover additional living expenses, including costs for food, hotel, etc. Make sure you check your policy to see how much it will pay and how long it will cover extra expenses.
- And finally – because it’s inexpensive! On average, the standard renters insurance policy costs under $200 a year. Cost will, of course, depend on how much coverage you want, your deductible, where you live and the kind of coverage you select. Two hundred divided by 12 is less than $17 a month, quite a bargain to protect your belongings!
The reality is renters insurance is a must if you want to protect yourself and your belongings. Trust us, in the long run it’s well worth it. And even if you never suffer any kind of loss, the peace of mind renters insurance gives you is invaluable.