If you are a renter, there are many reasons to invest in a good renters insurance policy. Some renters falsely believe that landlord property insurance will cover their losses from theft, burglaries, or some other catastrophic event but it does not. Standard landlord insurance covers only the building itself, but not your personal belongings.
According to a poll conducted by the Insurance Information Institute poll, only 37% of renters carry renters insurance. This may be due to misinformation regarding coverage. Never make assumptions when it comes to renters insurance. It is advantageous to have if you are a victim of a robbery, fire, or some other unfortunate event that results in the loss of your personal property.
- Cost: Many people do not know how incredibly cheap renters insurance is. According to the National Association of Insurance Commissioners, the average policy is only $187 per year. The amount is based on factors such as the amount of coverage needed. This can range from $10,000 all the way up to $1 million. The deductible should also be considered.
- Personal property is covered: The average renter owns about $20,000 worth of property including clothing, jewelry, furniture, and electronics. Replacing the things you own can add up very quickly. If something happens where your personal belongings are lost, you will need to have the means to replace them as quickly as possible.
- Landlord requirements: Most landlords make rental insurance a requirement. In most cases, they deal with a specific insurer who can give you the best rates. Landlords often require tenants to take out at least $20,000 of insurance. You do have the option to up the policy if you need more protection. If you do not like your landlord’s company, you are free to shop around to companies that better fit your needs.
- Liability coverage provided: Liability is the standard coverage available. It will cover any court costs and judgments if you are sued by someone injured in your home. Liability coverage can range anywhere from $100,000 to $300,000.
- You are covered when you travel: Renters insurance will provide the coverage you need for losses whether you are home or away. Always check the details so you will know exactly what is covered.
- Additional living expenses are covered: If your domicile becomes inhabitable, renters insurance may cover additional expenses if you need to live somewhere else temporarily. The insurance may also cover food expenses and more. Always check the details of your policy for caps.
The bottom line is you cannot afford to be without renters insurance. First, you never know when catastrophe will strike. And it is better to be safe than sorry. Renters insurance not only keeps the renter safe, but it can also be a godsend if someone is accidentally injured.
Be sure to reach out to an agent who can give more information about renters insurance. Consider the price, deductibles, and even the coverage limits. Not all of the renters insurance is alike. Always shop around to get the best rates.