Most people recognize that renters insurance covers their personal belongings in their rental if somebody robs them or if a disaster takes place, but only 41% of tenants have policies.
While American homeowners typically understand the importance of insuring one of the most expensive purchases, renters might not understand the significance of purchasing renters insurance.
While some perceive the added cash that goes toward this policy every month as an unnecessary bill, the added coverage you acquire from the policy might spare you from needless headaches in case of theft, environmental, or accidental damage. If you’re still uncertain about whether to purchase this product, consider these benefits.
Extra Living Costs
Renters with sufficient insurance coverage don’t have to worry about where they’ll reside following a disaster, for instance, a fire.
Renters insurance will typically reimburse you for temporary accommodation, for instance, a hotel room or another rental while yours undergoes repairs. It might also cover restaurant meals in the event that your unit is uninhabitable and you have to eat out.
Liability Coverage
Having the suitable policy can help protect you in case an accident takes place in your unit. For instance, if a guest slips and falls on the rental, most insurance policies provide liability protection that would cover you for this incident in the event that you face a lawsuit.
The policy would cover the legal expenses up to your policy’s limit. Keep in mind that the degree of protection will depend on the individual policy’s terms.
Theft
If you own a computer, you recognize how valuable it is for running applications, storing data, surfing the web, and for entertainment purposes, for instance, streaming video. Moreover, the data, documents, videos, and photos you maintain on your computer are irreplaceable.
Most renters policies provide a standard payout, frequently replacement value, if damage or theft occurs on your computer. If you believe you require extra coverage, you can buy an endorsement or additional coverage for your computer and other items, for instance, silverware, jewelry, and anything else you wish to insure.
Property Damage
In the event that you back over the neighbor’s kid’s bicycle because of not seeing it behind your vehicle, don’t worry. Renters policy includes liability coverage if you destroy or damage somebody else’s property.
Water Damage
A pipe might burst in your ceiling while you’re away working and damage your expensive antique chair. Your renter’s policy will cover to repair the antique chair. In this case, the policy will come in handy because your landlord’s policy doesn’t typically cover your personal items.
Wind or Fire Damage
A renter’s policy can provide protection if your possessions are damaged or lost from wind or fire damage, for instance, a tree falling on the rental property. Depending on the policy you choose, you can obtain an actual value for your possessions or the replacement cost. Beware that replacement cost policies tend to be slightly more costly.
Affordability
Numerous renters hesitate when it comes to buying this policy due to the cost. You’ll discover that it can actually be extremely affordable. Most policies cost between $100 and $200 annually. However, the cost will differ depending on factors, for instance, the amount of coverage and the property’s location.
Final Thoughts
While renters insurance is a vital financial product, it doesn’t cover everything. Therefore, you’ll want to buy separate insurance for costly items, for instance, an engagement ring.
It’s also important you buy sufficient insurance to replace your items and select a high enough liability to protect any property and savings you could lose in case of a lawsuit.
For more information on the benefits and importance of renters insurance, contact us at Apartment Agents or leave a comment.
