If you are planning to rent an apartment or home then you need an insurance policy. Yes, it’s not only the owners who can apply for home insurance even you have some rights. You need an insurance policy to cover your belongings. Your landlord’s insurance policy covers losses to the apartment or building itself. But when it comes to your personal belongings and other liabilities you need a renter’s insurance policy. You must find an apt insurer to provide you with the best policy. There was an insurance information institute poll conducted in 2014. According to it, there are only 37% of renters that apply for renter’s insurance policy. On the other hand, 95% of homeowners own a homeowner’s insurance policy. Thus, we inspected this topic. And here we are with 6 reasons why you need renter’s insurance.
Why is the percentage of people owning renters insurance low? Do people think that landlord’s insurance policy cover renter’s personal belongings too? Maybe a few them do believe so. If you go on and calculate the value of your electronics and other essentials, it is high. You cannot pay thousands of dollars and start your life again. People even overlook liability in most cases. If there is a minor accident and people get injured at your house, they will sue you. Here, we are going to give you major reasons to have renters insurance. We are sure you will buy a renters insurance policy after understanding its significance.
Read Also: A Guide To What is Renter’s Insurance?
6 Reasons Why You Need Renter’s Insurance!
#1. Renters Insurance Is Affordable
If you go by the average cost of a renter’s policy then it costs around $187 a year. Affordable isn’t it? Although, there might be a slight change in figures as the calculation by the NAIC is of 2013. By NAIC we mean National Association Of Insurance Commissioners. Don’t you think it is a good reason why you need a renter’s insurance?
The actual cost depends on various factors. It could be the amount of coverage you need for the type of coverage. Also, the number of deductibles plays an important role. Of course, the place you live in has an important role too.
If you live around South Dakota then you have to pay less as compared to Mississippi. Each state or country has different risk factors to deal with. That’s why there is a difference in policy prices.
#2. Your Landlord Might Need Renters Insurance
With your landlord’s insurance, you get coverage for the structure only. You won’t be getting protection against loss of personal belongings.
Landlords these days are making it mandatory for their tenants to purchase renters’ insurance policy. If you are planning to shift to a new place your landlord may ask you to show proof of insurance. If it is mandatory then it will be a problem for you. In fact, it is a great idea to shift some responsibility to the tenants. In fact, your landlord may help you in case you need assistance in finding a good policy.
#3. It covers personal property loss
Yes, a renter’s insurance policy protects against the loss of personal property. Don’t you think this makes for one of the best reasons why you need renter’s insurance? It includes jewelry, clothes, computers, luggage, electronics, and furniture. If you think that you don’t own anything then you might be wrong. Even the smallest things add up to a huge value. In fact, you may have to pay a high amount to replace such things. According to research, renter’s own an average of $20,000 worth of personal property. Renter’s insurance policies protect against a long list of perils. For example, damage due to explosion, falling objects, smoke, theft, fire, or lightning.
Renters’ insurance policy doesn’t cover losses due to earthquakes or floods. You need a separate policy for such perils. In fact, you need an additional rider to cover wind damage in areas with frequent hurricanes. Also, don’t expect coverage for losses that occur due to your own negligence.
#4. You get coverage for your belongings when you travel
Renter’s insurance provides coverage for your personal belongings. You get it whether you are at the home, car, or while you are traveling. The policyholder gets coverage from loss due to theft and other covered losses. You can travel anywhere in the world with such coverage. You must check your policy or ask your agents for details on what they are ready to offer. Isn’t it a great reason why you need renter’s insurance.
#5. Renters Get Liability Coverage
A standard renter’s insurance policy includes liability coverage too. It provides protection if someone suffers from injury while at your home. It could be because you or someone under coverage accidentally injures someone. Also, court judgment and legal expenses come under its coverage.
Most of these policies provide coverage of at least $100,000 of liability coverage. You get medical coverage of $1000 to $5000 too. This is one of the reasons why you need renter’s insurance. If negotiation goes well you can increase coverage limits too. Consult your insurance company for the various coverage terms and conditions.
#6. It may include additional benefits
Due to reasons that come under perils, if your home becomes uninhabitable then insurance policy may cover additional living expenses. It includes the cost of shifting somewhere else on a temporary basis, food, and more. Check with your policy provider to find how long these additional expenses benefits last.
With more than 35% of the United States population living on rent, its important that you get rental insurance. Yet, people age between 23 and 29 do not have insurance so it puts them under high risk. There are a lot of things that may happen and are out of our control. In any situation, you might think of securing your property and belongings.
Renter’s insurance provides financial security for loss or damage to property. The type of insurance benefits obviously varies according to the kind of property you are living in. In fact, electrical issues that lead to fire are usually not covered by landlords. If you misuse the electrical system, your landlord won’t be liable. With renters coverage, you can handle charges of damage that occur due to your negligence. We hope we gave you enough reasons why you need renter’s insurance. In case of a doubt, feel free to contact us through comments.