If you’re paying more rent than you’d like, you probably wouldn’t want to include another monthly bill. In particular, you’re likely to ignore renters’ insurance, thinking your belongings aren’t worth insuring. However, renters insurance doesn’t merely safeguard personal belongings. Rather, it offers liability insurance, temporary living costs, and more.
Yet, few renters carry this policy because many incorrectly assume they fall under their landlord’s policy. Here’s a look at why you should purchase renters’ insurance.
1. Protect Personal Belongings
It’s advisable to have an inventory of personal belongings in case of unforeseen loss. The insurance policy offers protection against property loss, including furniture and clothes. You might argue that you don’t own much property. However, it could add up to more than you realize and you’ll end up spending more to replace everything you’ve lost.
A standard policy covers losses from perils such as vandalism, and unintentional water overflow. Keep in mind that losses arising from earthquakes and floods aren’t covered in standard policies. Instead, you require a separate rider or policy for such perils. Furthermore, a separate rider might be necessary to cover wind damage in places vulnerable to hurricanes.
2. It can Help Cover Legal Expenses after an Accident
An accident can take place in your residence. For instance, a guest can sustain an injury after tripping over your rug. In this case, the liability segment of your renters insurance will kick in. This portion of renters’ insurance covers injuries to other parties and unintentional property damage.
Moreover, it covers your legal expenses, judgments, and settlements if you face a lawsuit due to an accident. In case an accident takes place and you don’t have liability insurance, you’re likely to cover the associated medical costs, legal costs, and property damage repairs.
3. It Can Cater for Temporary Housing
In case a problem covered by your renters insurance makes your rental uninhabitable, the segment that deals with extra living costs in your renters’ policy can cover costs such as restaurant meals and hotel bills. For instance, if a pipe bursts accidentally, forcing you to leave temporarily while your landlord makes repairs, you can secure temporary housing through your renters’ insurance.
4. Landlord’s Insurance Doesn’t Cover Personal Property Loss
It’s easy to assume that renters’ insurance isn’t necessary because of landlord insurance. However, renters’ insurance differs from landlord insurance in terms of the coverage. For instance, if theft or fire arises, you cannot claim against landlord insurance to replace your personal items or cover temporary housing.
After all, landlord insurance covers your landlord’s possessions as well as the building structure. Although landlord insurance covers unintentional property damage and injuries to other parties, it’s typically restricted to accidents that arise in common places. For instance, if a guest sustains injuries on a staircase outside your rental unit, your landlord’s insurance would cover the costs.
5. Affordability
Considering the broad protection you’ll obtain from renters’ insurance, the policy is relatively affordable. Generally, the average cost of renters’ insurance is between $15 and $30. However, the cost differs based on factors such as the coverage needed, the coverage you choose, and the deductible amount.
Final Thoughts
Many renters presume that they don’t own enough valuables to make the purchase worthwhile. However, they don’t recognize that the replacement cost could easily add up to thousands. If you’re still uncertain about the benefits of renters’ insurance, this invaluable piece will shed some light.