6 reasons why you should get renters insurance
Are you renting an apartment or house? Then you need an insurance policy that can cover damage to the property where you live.
While 95% of people who own property have insurance, only 41% of those who rent have renters insurance.
Why do so few people have this insurance? There is some explanation in that most people think that landlord's insurance covers them. Another reason is that people can't fully appreciate the value of their property. If you count your clothes, your gadgets, your appliances, the amount is easily more than a few thousand dollars.
Liability is also often forgotten: Someone can cause health damage in your home - it could be someone you know, but also, for example, a food delivery person who will sue you. You may have thought all along that you wouldn't need insurance, but here are six really important reasons not to overlook:
1. It's not expensive
The average price of renter's insurance is about $180 according to the NAIC for 2020. The actual cost, however, will depend on what kind of insurance you need.
2. Insurance can cover damage to your personal property
Renter's insurance will protect your personal possessions such as: clothing, computers, appliances, and furniture. Even if you don't have a lot of possessions, insurance will cost you much less than if you tried to replace everything you might lose.
Insurance can really protect you from a huge list of potential damages. An HO-4 policy created specifically for renters can cover the loss of your personal property, and protect you from hazards such as:
- Damage from vehicles (including airplanes)
- Falling objects
- Natural phenomena such as fire, lightning, etc.
- City disturbances
The standard policy does not cover losses due to natural phenomena such as earthquakes or floods. To insure against these situations, you may need a separate insurance program, which will be especially important in areas prone to these natural phenomena. Of course, insurance will not cover damage you cause yourself. For example, if you forget to turn off the faucet and flood your own apartment, insurance is unlikely to cover the loss.
3. Your landlord may require that you insure your property
Landlord's insurance may cover the property, but not your personal belongings. An increasing number of landlords are requiring tenants to purchase insurance for their personal belongings and may ask to see this insurance.
This can either be his initiative or dictated by his insurance company. The point is that when a renter insures his or her own property, some of the liability will not be on the landlord. You can ask your landlord for help with choosing and getting insurance.
4. Liability coverage
You will have much more peace of mind if you have protection in case someone gets hurt while in your home, or you accidentally injure someone in your home. This kind of insurance can pay for legal expenses if anything happens.
Most insurance provides about $100,000 for liability coverage, and a little less for medical expenses. You may be able to choose higher limits for coverage if you want.
5. Insurance will cover your possessions, regardless of where you are
No matter where you are, whether you're traveling, in your car, or in your home, insurance covers your possessions.
6. Insurance will help with additional expenses
The property you live in may become uninhabitable because of any situations it covers. You can move to live somewhere else for a while, and insurance will pay for the costs associated with your move and food. Of course, you'll need to check with the insurance company about how long and in what situations these extra costs will be covered.
Renter's insurance can keep you out of expenses if your property is lost, if someone is injured while in your home, and if, due to some unforeseen circumstance, you are unable to live on the rental property.
First, of course, you need to make sure in which cases your insurance will work. Find out about the deductibles, limits, and discounts available to you.
There are many different types of insurance. One may reimburse you for a new phone based on the current market value, while another will reimburse you for a phone that is 10 years old.
When you're choosing an insurance plan, make sure you choose the one that's best for you.
Was this article helpful?45 Posted by: 👨 Reyna L. Miller