When you’re looking for an apartment or home to rent, you might notice that some properties state that tenants are required to have renter’s insurance. However, you might not know exactly what renter’s insurance is, what it covers, or why you need it.
Anyone who rents property should have renter’s insurance as it is a great way to protect your personal belongings. Here’s what you should understand about renter’s insurance and how it benefits you.
What is Renter’s Insurance?
Renter’s insurance, sometimes called tenant’s insurance, is a type of insurance that is meant to protect you and your personal property. Typically, a renter’s insurance policy will include liability coverage, personal property protection, and will cover temporary living expenses in the event that your home or apartment becomes inhabitable.
As some situations are unpreventable, renter’s insurance can help minimize the consequences you experience as a result of break-ins and other damaging circumstances.
What Does it Cover?
Depending on your policy, renter’s insurance can cover a variety of things.
If a guest is injured on your property or you damage another person’s property and you are found to be at fault, then you may be protected by your renter’s insurance. Liability coverage will cover any expenses related to medical bills or property replacement up to your coverage limit.
Personal Property Protection
In the event that your home is broken into, you might find that the culprit has stolen several incredibly valuable items. Personal property protection can help you replace items such as furniture, clothing, electronics, and more up to your coverage limit.
If your home is damaged and you have to temporarily relocate, things like hotel costs can add up quickly and become unaffordable. Typically, renter’s insurance does not cover natural disasters like floods or earthquakes. You should be sure to check your specific policy to see which events are covered and what your coverage limit is.
Why Renter’s Insurance is Important
Some people choose to forego taking out a renter’s insurance policy if it is not required by their property owner; however, renter’s insurance is always a good idea for a number of reasons.
Theft is a major problem for apartment renters, particularly in major metropolitan areas. It can be difficult to find the funds to replace expensive items like TVs, furniture, game systems, and other costly items. Renter’s insurance will give you peace of mind as you know that your items will be replaced if stolen.
Renter’s Insurance is Often Required
It can be difficult to find the perfect apartment. Depending on your budget and desired location, your options might be severely limited. Don’t limit your options even more by neglecting to take out a renter’s insurance policy. Renter’s insurance is typically very cheap, so there’s no reason not to have it.
Fires, windstorms, lightning, hail, and other disasters can severely damage your home and property. Renter’s insurance can prevent you from losing your valuable in the event that an unpreventable natural disaster strikes your home. Additionally, if the disaster makes your home inhabitable, renter’s insurance can help you cover temporary relocation expenses.
Renter’s insurance is a very important resource for individuals renting a home or apartment. While some people avoid taking out a policy in order to save money, there are several reasons for you to consider paying for renter’s insurance.