Paying for insurance is a pesky cost. It’s the only item in your life you pay for and hope never to use.
Renters’ insurance is also clouded with confusion, and most tenants are unaware of a variety of protections outside of the basic coverage, such as:
- Temporary Living Expenses: If your rental becomes uninhabitable due to a covered event (like fire or severe weather), renters insurance can cover the cost of temporary housing.
- Off-Premise Coverage: Many policies protect your belongings (like bikes or laptops) even when stolen outside your rental unit, like at a coffee shop or park.
- Credit Card and Forgery Coverage: Renters insurance may cover unauthorized transactions and losses due to forgery on your credit card.
- Spoiled Food Reimbursement: If a power outage or a covered peril causes your fridge to stop working, renters insurance can reimburse you for spoiled food.
- Electronics Coverage: This can provide specific coverage for electronic devices, often with a lower deductible than the standard policy.
- Pet Liability Coverage: If your pet injures someone or causes property damage, some renter’s insurance policies can offer coverage for these incidents.
Since 45% of tenants in the US are uninsured, and 75% of those covered purchased due to landlord requirements, this post focuses on the four essential reasons you should purchase renter’s insurance today.
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4 Reasons You Must Purchase Renter’s Insurance
Whether you rent a complete house, apartment, or a bedroom in a shared household, renters insurance is necessary.
A common misconception for tenants who rent a bedroom from a homeowner is their homeowner’s insurance will protect them, but this is often not the case and is never guaranteed.
#1 To protect your personal belongings
Your landlord’s insurance covers the building itself, but your personal belongings, like furniture, electronics, and clothes, are all your responsibility.
Renters insurance protects these items from covered events like theft, fire, storm damage, and more. Imagine replacing everything you own out of pocket – renters insurance can offer peace of mind and financial protection in such situations.
#2 To cover additional living expenses
Significant water damage cleanup takes 7 to 14 days to complete. Once cleaned and dry, rebuilding can take an additional 1 to 4 months.
Renters insurance can help cover additional living expenses like hotel stays, meals, and laundry while repairs are being made. This can prevent you from having to dip into your savings or go into debt during a difficult time.
#3 For liability coverage
If someone is injured while in your rental property, or if you accidentally cause injury or property damage to others, you could be held legally responsible.
Renters insurance typically includes liability coverage, which helps protect you from these financial risks.
For example, if a guest trips over a rug and breaks their arm in your apartment, you could be sued for medical bills and other damages. Liability coverage can help cover these costs.
#4 Affordable peace of mind
Renters insurance is surprisingly inexpensive, with an average monthly cost of $18. Online insurers, like Lemonade, offer plans starting at $5.
Considering its financial protection, renters insurance is a small price for peace of mind. Replacing even a few valuable items would often surpass the annual insurance cost.
Final Thoughts
Remember, these are just a few top reasons to have renters insurance. There are many other benefits, and the specific coverage details can vary depending on your policy. Do your research and choose a policy that meets your needs and budget.
Renters insurance is a wise investment that protects you from various financial risks. Whether you own a lot of valuable belongings or want peace of mind knowing you’re covered, it’s worth considering.
