Top 5 Reasons to Get Renter's Insurance
If there is a fire outbreak in your rented apartment, can you afford to replace all your lost items? How about your vital documents, laptop, phone, and electronics?
Having renter's insurance will not stop you from experiencing thefts, fire outbreaks, water damage, or other terrible events. However, it will make life easier if you lose your valuables. Most renters often wonder why they need renter's insurance when the landlord already has insurance.
As a tenant, you need renter's insurance because the landlord's insurance only covers the house and every accessory that belongs to the landlord. It does not include tenants' properties from the coverage because landlords are not responsible for the things tenants own or do in the house.
The landlord's insurance is unlike the homeowner's policy that covers everyone at home, including the properties of the children. Homeowner's policy does this because parents have some control over the activities of their children.
Many renters often misconceive that the landlord's insurance will protect their belongings from damages and loss. Sometimes, tenants may think they don't have many belongings that will necessitate spending money on renter's insurance.
This is another misconception because they acquire various gadgets over time and it will get to the extent that they do not know the exact worth of their items. It is essential to note that your belongings can be over $20,000 even if you are residing in a studio apartment.
Below are the top 5 reasons to get a renter's insurance.
1. It provides unrestricted access to quality rental housing
Most landlords require tenants to own their renter's insurance policies. They make it a prerequisite to leasing out the apartment to tenants and may expect you to show them proof before signing the lease.
Sometimes, it could be the landlord’s decision. Other times, it may be an order from the landlord’s insurance company. It is believed that if tenants have their renter’s insurance, the landlord becomes free of some obligations.
Although not every landlord will ask for renter’s insurance from potential tenants, not having one will limit you from accessing most high-quality rental properties. You may only have to choose from some lower-quality houses that do not require renter's insurance.
2. Coverage for additional living expenses
Sometimes it may happen that your rented apartment suddenly becomes uninhabitable. That may be due to a fire outbreak, pest infestation, water damage, tree falling on the house, gas leak, or any other covered peril. If this happens, you will need to vacate the property to a safe place until your landlord resolves the issue.
During this time, you will be incurring additional living expenses. But if you have renter's insurance, it will cover the extra living expenses such as the cost of temporary accommodation, food, and more. Remember to confirm the duration and amount that your insurance company covers the additional living expenses.
3. Personal property coverage
Your renter's insurance will protect your properties against losses to a list of perils. A standard policy will protect your belongings from threats such as theft, vandalism or malicious mischief, damage by aircraft or vehicles, smoke, fire or lightning, explosion, windstorm or hail, the weight of snow, sleet or ice, falling objects, riot or civil commotion, volcanic eruption, damage from steam or water from sources like fire, protective sprinklers, heating, plumbing, or air conditioner.
4. Personal liability protection
If a visitor sustains an injury in your home, your renter's insurance will protect you from the liability. The coverage includes legal expenses, court judgments, and treatment of the injured person up to the policy's limit.
If you damage the landlord's property or your neighbor's belonging out of negligence, your renter's insurance covers it too. Most renter's insurance offers liability coverage of at least $100,000, and you can pay for a higher amount depending on your needs.
5. Coverage while traveling
Renter's insurance provides coverage for your properties while at home, in the car, and while traveling. If you lose your belongings while traveling, your renter's insurance will cover the items. Also, if a thief breaks into your car and steals your belonging, your renter's insurance will provide coverage. Ensure to find out from your insurance agent the details concerning "other covered losses".
The bottom line
Renters insurance is quite affordable. The average cost for a standard policy is about $180 every year. However, you stand to enjoy benefits that are worth thousands of dollars. If you own a car, you can bundle your renter's insurance with your auto policy. You may get a deduction of up to 5% or more, courtesy of multi-policy discounts.
Although renter's insurance policies vary from place to place or case to case because of the peculiarities, it is in your best interest to obtain it. Doing this gives you peace of mind as you go about your normal daily activities.