Renter’s insurance: 6 reasons to get it

Renters need insurance policies to cover their belongings when renting an apartment or a house. An apartment, a house, or a duplex are all covered under your landlord’s property insurance. Tenants are responsible for finding and paying for their own renter’s insurance policy, which covers their personal property. While 95% of homeowners have a homeowner’s insurance policy, only 41% of Renters insurance have renter’s insurance.1

Renters rarely have insurance, so why is that? It may be because many people believe they are covered by their landlord’s policy. Others may undervalue their belongings. It wouldn’t take long to reach thousands of dollars if you added up the value of your clothing and electronics.

Liability is another reason that is often overlooked: If someone is injured in your house – whether it is a friend, neighbor, or the pizza delivery man – they could sue you. There are six good reasons why you should get renter’s insurance even if you thought you didn’t need it.

1. The price is reasonable

Based on the latest figures from the National Association of Insurance Commissioners (NAIC), the average renter’s insurance policy costs $180 a year. Your actual cost will depend on factors, including how much coverage you need, the type of coverage you choose, the amount of your deductible, and where you live.2

Secondly, personal property is covered

Your personal property is covered by a renter’s insurance policy, including clothes, jewelry, luggage, computers, furniture, and electronics. The costs of replacing it, even if you don’t have much, can quickly add up to more than you realize.

The standard insurance policies don’t cover losses caused by floods or earthquakes. These perils require a separate policy or rider. Furthermore, in areas prone to hurricanes, a separate rider may be necessary for coverage of wind damage. Your own negligence or intentional acts aren’t covered by renter’s insurance. It is highly unlikely that a policy will cover a fire caused by a lit cigarette while you are asleep.

The third paragraph. It may be required by your landlord

The structure and grounds are covered by your landlord’s insurance, but not your belongings. Tenants are increasingly being required to purchase their own renter’s insurance policies, and landlords expect to see proof of this.

The landlord may have suggested this, or the insurer may have ordered it. A landlord would be relieved of some responsibility if the tenants were covered themselves. Your landlord might be able to assist you with finding or obtaining insurance.

Four. Liability insurance is provided by it

In addition to liability coverage, standard renters’ policies include additional coverages. You (or any other covered person) can be held liable for injuries that occur inside your home or if someone is accidentally injured by you. Any court judgments and legal expenses are covered up to the policy limits.

 Depending on your policy, you may have to pay a deductible before coverage begins.

A typical policy covers liability up to $100,000 and medical payments up to a smaller amount. You can request (and pay for) higher coverage limits if need be.3

Five. Travel insurance covers your belongings

Your personal belongings are covered by your renter’s insurance, whether they are inside your home, in your car, or on your person when you travel. No matter where you travel, your possessions are covered against theft and other covered losses. Find out what constitutes “other covered losses” in your policy or speak with your insurance agent.

six. Additional living expenses may be covered

When your home is rendered uninhabitable due to one of the covered perils, your renter’s insurance policy may cover “additional living expenses,” such as the cost of temporary housing, food, and more. You should check with your policy to see how long it covers additional living expenses, and if the amount paid by the company is capped.