While most people have heard of and are even required to carry homeowners insurance, renters insurance remains somewhat of a mystery for others. But a good renters insurance policy will cover your belongings in the same ways a homeowner policy does; providing you with peace of mind. To learn more about renters insurance or to find out if it’s right for you, read on.
Why do I need it?
Are you a renter? Do you ever worry about what might happen if your apartment building burns down and your personal property is destroyed? A good renters insurance policy could alleviate that concern and more. Let’s say your expensive and brand new gaming computer is stolen out of your apartment while you are at work. Did you know that a renters policy would cover it and allow you to get a replacement? It would and would cover a lot of other things too.
Sadly, many renters don’t know about the perks of renters insurance. While some buildings and landlords require their renters to carry insurance, most do not. For this reason, renters lose thousands of dollars of personal belongings each year to fires, floods, natural disasters, and even theft or vandalism. While not all prized possessions can ever be compensated for, a good renters policy will help with reestablishing your life after things like earthquakes and flood damage.
Coverage could go further than you expect.
Rental insurance policies may go further in covering you than you realize. From covering you in the event of natural disasters by paying for your hotel rooms, to covering any guest injuries; these policies could save you from serious financial hardship. When doing your research, ask about the limits of your policy, depreciation deductions, and just how much coverage each company you speak to carries. The amount of coverage will vary from one place to the next but taking the time to get renters insurance quotes will pay off in the long run.
Do you have kids? Renter’s insurance may cover any damage they do to your neighbors’ property. What about a dog? Most policies cover dog bites too. Most cover your belongings even away from home (such as during travel), and the right coverage could even include things that you have rented or borrowed. All of this adds up to a whole lot of coverage, even if you believe your valuables aren’t really that valuable after all.
What if I’m the landlord?
Maybe you aren’t a renter. Instead, you could be looking at converting a primary residence into a rental property and wondering how renters insurance might impact you. The short answer is a lot. Most tenants either underestimate what their valuables are worth or just don’t want to spend the money on additional coverage. Some assume that your policies will cover them in the event of property damage. For this reason, you may want to think about making rental insurance a requirement in your leases. Doing so will offer you liability protection and save you from lawsuits that otherwise wouldn’t apply.
Renters insurance won’t just protect you. It will protect your tenants too. Many rental insurance policies cover not only renter possessions lost to theft or damage, but personal injuries too. For example, if a tenant were to get hurt on the property, they could be covered through their own required policy. While not every state allows landlords to mandate coverage, some do. You will want to check with your local state and city laws to see if requiring insurance is something you can implement as a rule.
While many landlords hesitate to require coverage as they worry about keeping apartments full, doing your research ahead of time could actually be doing both yourself and your newest occupants a huge favor.