6 Good Reasons to Get Renters’ Insurance

If you rent a home or an apartment, you’ll want to look into a renters’ insurance policy that covers your stuff. It’s 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 any unforeseen losses later down the road.

Though it’s super important to have, renters’ insurance is taken far less seriously than homeowners insurance. About 95 percent of homeowners have homeowners insurance, while only 41 percent of renters have renters’ insurance. If you’re on the fence about getting yourself good renters’ insurance, check out these six reasons to take the plunge:

It Covers a Wide Range of Losses

One of the biggest benefits of renters’ insurance is the fact that it covers damage to your personal property. This includes valuables like jewelry, clothing, tech equipment, appliances, and furniture. Even if you don’t own much, damage to any of these items means you will ultimately have to pay to replace them. With a renters’ insurance policy, you don’t have to worry about that. Even the most standard of policies are generally pretty comprehensive, covering theft and damage caused by vehicles, aircraft, and electrical fires, among other things.

It’s important to note that damage caused by natural disasters like earthquakes and floods isn’t typically covered under renters’ insurance. If you want to protect your stuff against these events, you may need to do so under a separate policy. Similarly, you live in an area prone to hurricanes, you’ll need an individual policy that explicitly covers that.

You should also know that renters’ insurance doesn’t cover losses caused by intentional acts or negligence as a renter. For instance, if you smoke a cigarette, accidentally fall asleep while it’s lit, and cause a fire, the policy won’t cover the damages. Understanding this will help you know exactly what renters’ insurance covers and what it doesn’t.

It’s Affordable

Renters’ insurance is affordable – another great reason you should consider getting it! For around $175 a year, you can get yourself a comprehensive policy. This is a very reasonable price considering everything it covers. Of course, the cost of your policy will depend on several factors. For instance, the type of coverage you choose could influence the actual price. Another factor affecting the insurance cost is the amount of your deductible. On top of this, where you live plays a crucial role in determining the cost of renters’ insurance. This is because some states have a minimum amount of money you can pay for renters’ insurance. If you live in one of them, you will have to pay at least that amount for a standard policy.

Liability Coverages

A standard renters’ insurance policy includes liability coverage. This is crucial because it provides protection when a person sustains injuries inside your apartment. It also protects you 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 expenses. Of course, you can also pay more for higher coverage limits if you want a more comprehensive policy.

Landlords Might Require It

Another reason you should get renters’ insurance is that your landlord might require it. After all, property insurance covers the building, but not your belongings. In some cases, you’ll explicitly be asked to take out a policy before being allowed to rent a unit. Apart from the landlord telling you to get this policy themselves, 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 for a unit that requires it, seek assistance from your prospective landlord.

It Covers Your Belongings When Traveling

Whether you’re traveling, in your car, or at home, renters’ insurance covers your personal belongings. This makes it very important because it protects your possessions against losses no matter where you are. Still, it’s important to check with your specific insurance company and understand what your policy covers.

It Covers Additional Living Expenses

Another good reason to get renters’ 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 usually cover the cost of living somewhere else temporarily until your unit is fixed. These policies will also usually cover food expenses while staying in your temporary home. As always, it’s important to confirm this coverage with your insurance company, as well as how much extra this protection may cost you.