As a renter, the insurance you need to cover your stuff will be necessary whether you live in an apartment or a house. If you suffer any damage to the building itself, your landlord’s insurance will cover the damage. Usually, a tenant has to take out renter’s insurance, which covers everything that belongs to them, including their liability and possessions. In contrast to 95% of homeowners covered by homeowner’s insurance, only 41% of renters have renter’s insurance.
Is there a reason for the uninsured status of renters? Most people believe that their landlord’s policy covers them, but that isn’t usually the case. People are also prone to underestimation of the value of their belongings. Even if you were to add up the cost of clothing and electronics alone, you would probably soon reach thousands of dollars. Liability is another reason that’s often overlooked. Suppose someone gets injured at your house, whether a friend, neighbor, or pizza delivery guy, they might sue you. Here are five reasons you should get renter’s insurance, even if you didn’t think you needed it.
Personal Property Is Covered
You should purchase renter’s insurance if you want to protect your personal property such as clothes, electronics, computers, furniture, jewelry, and luggage. The number of things you own, no matter how little they are, can add up to a lot more than you realize and much more than you can invest in replacing everything. The range of things that a renter’s insurance policy covers is pretty surprising. Provides coverage for personal property losses caused by:
- Aircraft damage
- Damage from vehicles
- Objects falling
- Lightning or fire
- Civil commotion or riot
- Malicious mischief or vandalism
- Eruption of a volcano
- Snow, sleet, or ice weight
- Hailstorm or windstorm
- Sources of water damage
There is no coverage for flooding or earthquakes under a standard policy. You will need a separate policy or rider for these perils. You can also take an individual rider if you live in a hurricane-prone area. There is no coverage for any damage caused by negligence or intentional acts on your part under a renter’s policy. When you fall asleep holding a lit cigarette, you might not be covered in case of a fire.
Landlords Might Want It
There is insurance coverage for the landlord’s property and its grounds; however, not for your stuff. Renter’s insurance is becoming more common among tenants, and landlords are also expected to require proof of coverage. This may be an idea from the landlord, or perhaps it comes from the landlord’s home insurance company. Some of the responsibilities of the landlord are diminished if the tenants are covered. It is possible that your landlord can provide you with insurance coverage if you are in need.
It is very common for renter’s insurance policies to include a liability coverage component as well. You are protected by this insurance if someone gets hurt in your house or if you or someone else covered by this policy makes an accident that results in someone else getting hurt. In a court judgment and legal fees, the policy pays up to the maximum limit.
If You Travel, You’re Covered
A renter’s insurance policy will deliver protection in case of an accident or loss while you’re inside your home, driving your car, or on the road. In case of theft or any other covered loss, you’re covered no matter where you go while traveling. Please check your insurance policy and see if there are any “other covered losses” you are covered for.
It Might Cover Extra Living Costs
Suppose your home becomes uninhabitable because of one of the covered perils. In that case, your renter’s insurance policy may cover what’s called “additional living expenses,” such as the cost of living somewhere else temporarily, the expense of food, and other expenses. Ensure that your insurance policy covers additional living expenses for a particular period and that the coverage is capped at a maximum amount.
Here’s The Deal
A renter’s insurance policy protects your belongings whether you are at home, in your car, or even on vacation. You also have to cover any liability associated with your renter’s insurance if you injure someone or hurt them by accident. Ask your agent about your policy’s deductibles, discounts, and limitations to know what they cover. Make sure to check your insurance policy to find out if your personal property is covered for replacement cost (RCC) or actual cash value (ACV). Renter’s insurance companies should be able to provide you with a policy that fits your requirements.