Why Do I Need Renters Insurance?
When renting a home or apartment renters insurance is extremely important in ensuring that your personal belongings are covered. Your landlord will have an insurance policy that covers the replacement costs of the actual building, but most of the time your personal belongings will be entirely for you to insure. Some landlords will require their tenants to have renters insurance while the rest strongly advise it. Despite this, only around 40% of renters have renters insurance.
So why is it that so few renters have insurance? It’s possible that they do not realize that their landlord’s policy doesn’t cover their personal belongings, or they just don’t see the value and would rather take the risk. Many renters may not realize just how expensive all their possessions are in comparison to how inexpensive renters insurance is. Here’s a list of four reasons why every renter should invest in insurance:
- It protects against losses to your personal property:
Renters insurance covers damage or loss of your personal property from perils such as fire, theft, falling objects, vandalism etc. and will save you from having to have to pay to replace your belongings on your own. It’s important to keep in mind that renters insurance only covers damage or losses cause by factors out of your control. If the damage is a result of your negligence or you damage your property intentionally it will not be covered.
- It provides you with liability coverage:
You landlords policy provides him with liability coverage in the event that you are injured in his home you’re renting out as a result of his actions or negligence, but what if someone is injured in the home you’re renting as a result of your actions/negligence? This is where renters insurance comes into play, most renters insurance policies provide at least $100,000 of financial protection.
- It covers additional living expenses:
Say your home is damaged from a fire that wasn’t your fault and you are forced to stay elsewhere while it is being repaired, renters insurance can cover the expenses of having to live somewhere else, food, laundry and more.
- It’s ridiculously cheap.
Many tenants won’t even consider renters insurance because they see it as a large expense, such as homeowners insurance. What they don’t realize is the average cost of renters insurance is only $144 a year. That’s $12 a month to insure all of your belongings and provide you with liability coverage and additional living expenses.