If you are a renter and want to safeguard your belonging from any kind of mishappening, you will need insurance cover. Even if your landlord has an insurance policy, it will cover the losses of his building only. The personal property of the tenant and certain other liabilities can be covered with a renter’s insurance policy. 2018 data shows that about 95% of the homeowners have taken some homeowner’s insurance cover while only 41% of the tenants opt for a renter’s insurance policy. When you rent a house you need to have renters insurance. Here are some authentic reasons why renters insurance is important
A major reason for the tenants not opting for the renter’s insurance is that they assume they are covered in the landlord’s policy. Most of the time tenants underestimate the value of their possessions. Another reason for not opting for renter’s insurance is the liability. The renter can get sued in a situation if someone gets an injury on their premises. Having an insurance cover could be a lifesaver.
Reasons why renters insurance is important
Landlord insurance does not cover the tenants
When you rent a house, your landlord may not ask you to have renters insurance. Do not be under the illusion that your belonging will be covered under his policy too. Most renters think that they do not need a separate insurance policy as they might be covered by their landlord’s policy. But this is not the case.
Their policy covers the building only and not the personal possessions of the tenants. So if there is a theft or fire in the rented home or you damage the neighboring apartment, the landlord’s policy will not pay for your losses. Getting a standard renters insurance policy gets you a liability cover of about $100,000 to pay for any losses, damages, or legal expenses.
Underestimating the value of your belonging
A big reason that tenants avoid an insurance policy is that they underestimate the value of their possessions. Most tenants think that they do not have anything expensive or valuable that needs to be protected. FIA Insurance Services Vice President Brandon Okita says if the tenants make an inventory of each item in their closet and drawer, calculating the value of each electronic item or jacket they have, they will be surprised by what they own and its cost if they had to replace this all. Thus if a renter knows why renters insurance is important, they will never forget to take the insurance before they rent a house.
An insurance policy covers the housing expenditure after a disaster
Most of the renter’s insurance policies cover the ‘additional living expenses also. If there is a major disaster like a fire or water damage and the tenant is forced to vacate the apartment, the policy pays even if the tenant has to stay in a hotel for some time. Food and other expenses are also covered under the Loss of use as the renter’s home is being repaired and he is living away from home.
Protection for your finances
Imagine a situation where you get sued and you have to use all your savings that you have been doing for a while. All your emergency funds can be wiped in minutes. If you already have an insurance policy most of the expenses (up to the purchased limits) are covered under the renter’s liability insurance. So if there is any accident at your home or away that could land you in a lawsuit, the renter’s policy makes sure that your savings are protected and the expenses are carried from the insurance money.
Coverage for stuff away from home
There are many renters insurance policies that offer coverage for belongings even when they were away from your home. Suppose you lost your phone on a train or your laptop was stolen from the cafe, your insurance policy might cover this all too. But filing claims is worthwhile if the lost items are worth more than your deductible amount. The policy can also offer coverage for items in your storage units. Overall, the policy is a must-have for all kinds of your belongings.
The insurance policy is not expensive
Another reason that renters avoid an insurance policy is the misconception about its cost. Looking at the coverage provided by a standard renters insurance policy, it is not expensive at all. A renter’s insurance policy costs around $168 per year on average which is about $14 per month. If you wish to save more, you can bundle your car policy along with it and get an additional discount. For example, if you bundle your $3,000 car policy and get a 5% discount, it would nearly be the amount you pay for the renter’s policy premium. Many companies offer more discounts if the apartments have smoke detectors, fire alarms, and other safety and smart equipment for protection installed.
The renter’s insurance policy is meant to protect you from the worst. 77% of the renters who bought the policy when their landlords asked them still kept on buying the policy after shifting to a new home where it was not required. The policy covers the renters against the things they cannot control and once covered they can see the protection benefits and keep going on with the coverage.
Is it worth going for a renter’s insurance policy?
Another important reason why renters insurance is important is that it offers complete protection to your possessions in case of a mishappening, liability coverage in case of an accident, and also covers belonging lost in travel. Your belongings are protected from many natural calamities as well. So if you can afford it, never miss renters insurance when you rent a home or apartment.
Important things your Renter’s insurance will cover
Usually, most renter’s insurance policies cover a long list of items and some important ones are electronics like computers and tablets, items of clothing, and furniture.
The average cost of Renter’s Insurance
You can get a standard renter’s insurance policy for a cost ranging from $15 to $30 as per the data from the National Association of Insurance Commissioners. Thus it is cheap but covers major risks, and thus justifies why renters insurance is important.
If you want complete peace of mind that your possessions at home, on a vacation, or during travel are protected, a renter’s insurance policy is a must. These are not the only reasons why renters insurance is important. There are more aspects to it. You also get coverage for an accident where you cause an injury to someone or someone gets injured on your premises.
Before taking any policy make sure to completely understand what it covers. Discuss with your agents about your requirements and ask them for discounts and deductibles. Make sure you choose the right company and the right policy for you that gives you good coverage with great discounts.