Why You Need Renters Insurance

Anyone renting a home or apartment should consider purchasing renters insurance. You might think that’s it’s an added expense that you don’t need right now but having it can end up saving you a lot of money in the future. You can never anticipate something bad happening, which is why it’s always important to try and be one step ahead. Some people might think that they don’t have enough belongings for this to even be worth it, but when you start adding up everything you have, you can see just how costly it can be if you were to have to replace everything.

It’s Affordable

Some shy away from even considering purchasing this coverage because they think it’s going to be too expensive to fit into their budget. The cost of apartment renters insurance isn’t as high as you might think it is. The cost varies depending on how much coverage you’re purchasing, the state you live in, your credit, and other factors. You can shop around and receive quotes from various other companies to find the ones that offer the most coverage for the most affordable price for you.

Your Landlord’s Home Insurance Policy Doesn’t Cover You

A landlord’s property insurance isn’t there to help the tenant, it’s there to protect themselves. Your belongings are not the landlord’s responsibility, so anything that happens to your personal property is left to you. If a tenant causes a fire in the kitchen and lost most of their belongings, the landlord’s insurance is there to cover their property, not the occupants’. A loss caused by the landlord’s negligence would almost certainly be their responsibility to rectify the issue, but there are many factors that come into play in this situation.

You’ll Have Liability Coverage

Liability insurance is something everyone should consider when renting a home. This type of coverage means that if someone gets injured while in your home, you’re less likely be required to pay for their medical and potential legal expenses out of your own pocket. A typical renters insurance policy will have around $1,000 to $5,000 worth of medical expense coverage.

Your Belongings are Covered

If you lost everything in your home right now from some type of disaster, do you have enough money in your savings account to help get you back on your feet? Most people don’t have that kind of money saved up. Renter’s insurance can provide you with compensation for replacing your lost items in the event of a fire, water damage, power surges, and other unfortunate events. To know how much coverage you’ll need, you should take an inventory of everything you own and try to come up with how much money you’d need to replace these items. Depending on what coverage you want, keep in mind some policies cover the depreciated value and others cover what it will cost to buy a new, equivalent item.

Temporary Lodging

Renter’s insurance will generally pay for a place for you to stay if your home is temporarily uninhabitable. No one wants to end up without anywhere to live while repairs are being made in their home. Having insurance can give you peace of mind knowing that if something happens, you’ll have somewhere safe to go.

Nothing can prevent bad things from happening. But, there are ways to reduce, or eliminate, your financial outlay.