7 Reasons Why You Need Renters Insurance

Renting your first apartment or home can be pretty challenging. You must sort out paperwork, extensively research price quotes and available options, and deal with legalities simultaneously. Most people ignore getting renters insurance for their apartments.

According to the studies conducted in 2018, around only 41% of renters obtain renter's insurance, compared to 95% of householders who have owner's insurance coverage. Most assume that renter insurance is covered under their landlord's property insurance policy, but that is usually not the case. Property insurance of your landlord may cover losses to the building itself but does not cover your personal belongings and certain liabilities. A renter's insurance policy is crucial for every tenant.

Getting renters insurance is more accessible today. You can look up all the options online and compare renters insurance quote to find the best deal for your home. If you live in a rental home or you are planning to rent a place, here are the top seven reasons why you need to invest in good renters insurance:

1.   Affordability

As per the National Association of Insurance Commissioners (NAIC), an average renter's insurance policy only costs $15 to $30 to the renter. This is highly affordable and can save you from losing belongings worth thousands of dollars if your home is harmed. It is important to note that the cost of your insurance policy will also vary depending on the coverage you require, the size of your rental home, and the insurance rates in your area.

2.   Coverage for Personal Property

A renter's insurance policy can protect you against any harm to your personal belongings present in your rental home. This may include any valuable jewelry, antique or ordinary furniture, luggage, tech gadgets, etc. Renter's policies also protect your personal property from perils, such as any damage caused to the property by an aircraft or vehicle, smoke, theft, civil commotion, and windstorm. Some policies go as far as covering any damage from water or even household appliances. If you live in a colder region, chances are your policy will also cover any damage from snow or hail storms. It is essential to check the coverage beforehand, to be aware of your rights, and demand fair compensation.

Notably, most standard policies may not cover damages from catastrophic disasters like earthquakes or thunderstorms. You may need an additional policy for such perils. If you live in areas prone to hurricanes, you may also need an additional policy or clause to protect your belongings against wind storms or hurricanes.

3.   Landlord’s Requirement       

Your landlord may require you to get renters insurance as well. As your belongings are usually not covered by the landlord's insurance, this can lead to severe future conflicts among landlords and tenants.

To avoid these conflicts, landlords now require tenants to purchase their own renter's insurance policies. This concept has helped shift some responsibility of the landlord to the tenant. Your landlord may also require you to show proof of the renter's insurance. Discussing these requirements before you rent a property is crucial to avoid conflict and clarify the terms of the agreement.

4.   Liability Coverage

Liability cover is an integral part of a standard renter's insurance policy. Liability coverage protects individuals who get injured at your house through an accident. It can help cover financial compensation and pay court judgments or legal expenses. The extent of financial coverage depends upon your policy type and your policy provider.

Most renter's policies will provide financial coverage of a minimum of $100,000. They may also offer minimal medical payment, such as medical bills, prescribed medications, and regular check-ups after the incident. Your insurer may have partner healthcare providers, so check them for discounts or additional coverage. You may also request a clause with higher coverage limits in your policy, which may increase insurance quotes. Consider discussing this with an agent from your insurance company before signing up for the procedure to help you better understand the extent of liability coverage in your renter's insurance.

5.   Coverage for Fire Damage

Owners typically do not pay for electric problems that result in fires. Your landlord can only be held accountable if the electrical wiring is faulty and the fire is not the result of abuse of the electrical system.  Your carelessness may subject you to liability for the damaged portion of the house and your personal property. In such cases, having a renter's insurance can cover the financial cost of repairs and replacement.

6.   Stress-free Travel

Renter's insurance helps you leave your rental home stress-free. If you are fond of traveling or if your job requires you to travel often for a more extended period, you may get worried about your belongings back home and any potential damage to the home. A renters policy will cover your personal assets, present in your house, and vehicle, and even while you're on the move. Your belongings will be covered under renters insurance and compensated for if they get harmed in cases of theft and loss in travel. It is crucial to review your agreement with the insurer beforehand or seek help from the customer service representative of your insurance company.

7.   Contribute to Additional Living Costs

In case your home is harmed during one of the risks discussed, your renter's insurance will help you cover expenses for living elsewhere while your home is repaired. This usually includes rent of the temporary space, food, and much more. You should check your policy beforehand to check the coverage of any extra living costs and the maximum coverage that your insurance provider gives out.

Endnote

Renter's insurance is an excellent way to protect your rental home and belongings. This policy provides coverage for your personal belongings, present in your home or even when you are away. Renter's insurance also helps provide liability coverage. It also pays for expensive medical bills if someone gets injured in your rental home, alleviating a significant financial strain and reducing stress.

Before you sign up for your renter's insurance, you must extensively research your options and compare the price quotes.You should base your comparison on the time each insurance provider takes to issue compensations, as well as the total coverage provided by them. You can also get word-of-mouth referrals from your colleagues or neighbors or check each company's online reviews to make a fair decision. We recommend contacting the customer service of all available insurance companies to inquire about any available discounts, additional clauses, and the coverage limits of their policy. This can help you set realistic expectations and avoid disappointment in the future.