People have a misconception about renter’s insurance. They think it’s unnecessary, “never needed it before,” or have some other silly excuse. The truth is, insurance is one of those things you hope you never need, but everyone needs to protect themselves from unforeseen accidents and incidents. Simply put, insurance is the real-world example of “better safe than sorry.” Renter’s insurance has become increasingly more affordable, with the average policy only costing a couple of hundred dollars each year. If you don’t have to make any claims, you aren’t down too much money, but you can have peace of mind knowing you’ll be covered if you ever need to. Over the years, more and more landlords are making renter’s insurance mandatory. Even if your current landlord doesn’t require it, you might as well get it because your next landlord is likely to make you have a policy, so you’re better off beating them to the punch. Below are six sound reasons why you need renter’s insurance.
Policies are Economical
Renter’s insurance is one of the cheapest insurance policies you will ever have. The average policy is one to two hundred dollars per year, at most. In the event you have to make use of your policy, you can plan to save significantly more money than you have been paying each month on your premium. The best part about renter’s insurance is you can lower your premium when you bundle your renter’s insurance with your car insurance. You can save so much when you bundle the two together that your car insurance premium will drop to cover the complete cost of your renter’s insurance policy. Essentially, you can have a renter’s insurance policy almost “for free,” so there is no good reason to not have it.
All Your Personal Belongings Are Protected
Your renter’s insurance policy protects everything inside of the property you lease from. This means all your personal possessions, such as jewelry, clothes, electronics, and furniture, are protected from theft and damage. Most people don’t realize how much they own until something unruly happens, and you most likely don’t want to cover replacing all your belongings on your own dime. Renter’s insurance protects almost everything you own, so you might as well pay a low monthly fee to have someone else replace it in case the need arises.
Your Landlord May Not Give You A Choice
A common misconception people have is, “my landlord has insurance.” The problem is your landlord’s insurance only covers the structure and their possessions within the rental unit, it does not cover any of your belongings. As time goes on, more landlords are requiring their tenants to acquire a renter’s insurance policy. Today, it’s at the point where renter’s insurance is practically a pre-requisite if you intend to rent, so mark this down as one of the top reasons you need a renter’s insurance policy.
Liability is Part of the Policy
Similar to liability with car insurance, a renter’s insurance policy has liability protection, too. In the event someone sustains an injury while in your apartment, liability releases you from responsibility for their medical bills. Your renter’s insurance, thanks to the liability protection, will cover all court costs and legal fees, up to your policy limit, should you ever find yourself in this position.
You’re Still Covered Even While Away
The best part about renter’s insurance is all your personal items are protected, even if they are in your vehicle and you are out of town. It is vital to know your exact coverage, but it’s normal for most renter’s insurance policies to protect your belongings even when you are traveling and away from your apartment.
Temporary Housing is Included
What most people don’t know is your renter’s insurance will protect you from “an act of God.” This means, if a storm destroys your apartment to where it is uninhabitable, living expenses such as temporary housing and groceries will be provided by your policy. Again, when you set up your policy, you will need to discuss this with your insurance agent, but it is crucial to know the specific details of your policy and the extent of what it protects. The good news is you are unlikely to be left homeless without food or shelter if you have a renter’s insurance policy.
