The Benefits of Renter’s Insurance: Why Every Tenant Should Have It
If you’re planning on renting an apartment or house, insurance is your best friend. As with everything else in life, an insurance policy helps cover your losses and belongings, and property insurance is no exception.
Renters insurance protects your belongings from damage or destruction, such as fires, burglaries, or other events. Not to mention, it also protects you and your money if someone gets injured at your property.
Nowadays, many landlords and renters are requiring their tenants to have renter’s insurance, and for a good reason. Even if you’re not required to carry it, staying covered is essential, especially since it’s an affordable way of protecting your property.
Why is Property Insurance Important?
Source: freepik.com
Whether you’re looking for a new property or have considered getting your personal belongings covered, insurance is the best way to go. Apart from protecting your assets and money, property insurance is also a smart financial decision that comes with many benefits.
Although only 41 percent of renters have renter’s insurance, the majority assume the landlord’s policy covers them. Additionally, Forbes states that many tenants simply overlook renter’s insurance, under the misconception that their belongings aren’t valuable enough.
That’s why landlords should require tenants to have renter’s insurance and protect them in the worst-case scenarios. In fact, Zillow states that landlords are legible to require insurance as a term of a lease renewal or a new lease.
What Does Renters Insurance Cover?
Similar to other types of insurance, renter’s insurance covers the expenses of your belongings, such as computers, furniture, television, clothes, and many electronics. According to Nolo, this insurance typically covers:
- Loss due to burglary
- Liability for injuries
- Negligent damage to the landlord or tenant’s property
- Natural disasters
6 Benefits of Having Renters Insurance
If you think you don’t think renter’s insurance, think twice! You should consider all the possible situations that may happen and the expenses that come with them. Here are the six main benefits why you should carry a renter’s insurance at all times.
Protects Your Personal Belongings
Undoubtedly, the main idea of renter’s insurance is to protect your personal items if the worst happens. After all, it’s always a good idea to take inventory of things you own, such as smartphones, laptops, TVs, tablets, furniture, clothes, shoes, etc. Even if you don’t think these cost a lot, they can easily add up, leaving you with a significant amount of expenses to pay.
However, some standard insurance policies don’t cover natural disasters like earthquakes or floods, so you might need separate insurance to deal with these damages.
At the same time, if you’re a potential new tenant and searching for a property that requires renter’s insurance, you can check websites like Rentberry to help you make a smart decision. Most renters on this website require a renter’s insurance, making it easier for you to pick a rental that fits your standards.
Liability Coverage in Case Someone is Injured at Your Property
What would happen if someone visiting you got hurt and you couldn’t pay for their medical expenses? Or worse, what if they sued you? You can also consider other potential situations, such as:
- Someone fell inside your apartment
- Your dog bit someone
- You had a party and things got wild
Luckily, with a renter’s insurance policy, you don’t have to worry about these things because you have coverage to protect your belongings and yourself. Although a majority of policies offer at least $100,000 of liability coverage, you can request higher coverage limits. Plus, according to a survey, 23 percent of people state they have renter’s insurance because of liability coverage.
Covers Your Belongings at All Times
If you thought renter’s insurance is only useful when you’re on your property, you’re wrong. One of the best things about renter’s insurance is that it covers your personal belongings even when they’re in your car or when you travel. However, you can find out more about these on your policy in the ‘’other covered losses’’ section.
Covers Additional Living Expenses
If your rental property becomes damaged or inhabitable during repairs, most renter’s insurance policy tends to cover ‘’additional living expenses.’’ For example, if you pay $1,000 for monthly rent, but can’t live in your property for a month while repairs are being made, then the insurance can cover the expenses up to $1,000 while you stay somewhere else temporarily or eat out. Again, you should check your insurance policy to know how long it can cover your additional expenses.
It’s a Low-Cost Option
Depending on where you live, renter’s insurance can be an affordable way of covering your personal belongings. Although each insurance company has its own rules for calculating insurance rates, they look into some common factors that affect your rate, including the following:
- Your region
- Your previous claims
- Your credit history
- Your coverage limits
- Your deductible
Additionally, in the U.S., statistics show that the annual average renter’s insurance cost is $179, or $15 monthly. However, your location is a significant factor in the cost of your insurance. In other words, you can secure your belongings and liability for a small amount of money, which can help you in the long run.
Reduces Risk of Lawsuit
Many tenants think the landlord’s liability policy covers their property in case of damage or injury, but that’s not always the case. It’s unlikely their policy will cover the tenant’s carelessness over the property. That’s why tenants can benefit from acquiring renter’s insurance as it protects not only their property against loss or damage but also covers their liability if someone is injured inside the rental.
For example. If an accident or fire occurs and damages your property, the landlord may make you pay for the expenses since your insurance is unlikely to cover the losses. However, renter’s insurance might help you with that, while also giving you peace of mind that you can recover without having to spend any money.