Is it Important to Get Have Renter’s Insurance?

If landlords purchase insurance to protect their property, the tenants should do the same. Tenants should get a renter’s insurance policy to protect their possessions and gets liability coverage in the event of an accident or other disasters. Here are some of the reasons why renter’s insurance is essential for every tenant.

Renter’s insurance is affordable

According to a report on 2013 by the National Association of Insurance Commissioners (NAIC), the average cost of renter’s insurance policy is $187 a year. The 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.

The insurance covers losses to personal property.

A renter’s insurance policy protects against losses to your personal property, including clothes, jewelry, furniture, computers, and electronics. Even if you don’t own much, it can quickly add up to a lot more than you realize – and a lot more than you’d want to pay to replace everything. According to esurance.com, the average renter owns about $20,000 worth of personal property.

Renter’s policies protect against a long list of perils. A standard HO-4 policy designed for renters, for example, covers losses to personal property from risks that include damage caused by aircraft or vehicles; damage caused by explosion; falling objects; fire or lightning; riot or civil commotion; theft; vandalism or malicious mischief; volcanic eruption; weight of ice, snow or sleet, windstorm or hail; damage from water or steam from sources including household appliances, plumbing, heating, air conditioning or fire-protective sprinkler systems.

Standard policies do not cover losses resulting from earthquakes and floods. These perils require a separate system. Also, a different rider might be needed to cover wind damage in areas prone to hurricanes. And renter’s insurance policies don’t cover losses caused by your own negligence or intentional acts. For example, if you fall asleep with a lit cigarette and cause a fire, the policy most likely will not cover the damage.

Your landlord might require renter’s insurance policy

Landlord’s insurance covers the structure itself and the grounds, but not your belongings. The landlord often requires tenants to purchase their own renter’s insurance policies to cover their personal belongings. It is the landlord’s idea, or the landlord’s insurance company recommends it – the idea being that if the tenants have covered themselves, it will take away some responsibility from the landlord. If you need assistance in finding or obtaining coverage, you can ask for help from your landlord.

Insurance provides liability coverage

Standard renter’s insurance policies include liability coverage. It protects if someone is injured while in your home or if you accidentally injure someone. It pays any court judgments as well as legal expenses, up to the policy limit.

Most renter’s insurance policies provide at least $100,000 of liability coverage, and between $1,000 and $5,000 for medical-payments coverage. You can request for higher coverage limits. If you need more than $300,000 of liability coverage, ask your insurance company about an umbrella policy, it can give you an additional $1 million worth of coverage for about $150 to $300 a year.

The insurance policy covers your belongings when you travel

Renter’s insurance policy covers your personal belongings, wherever you are, in your home, car, or while you travel. Your possessions are covered from loss due to theft and other covered losses wherever you are. Check your insurance policy or ask your insurance agent for details on what constitutes “other covered losses.”

Insurance may cover additional living expenses

If your home becomes unlivable due to one of the covered perils, your renter’s insurance policy may cover “additional living expenses,” including the cost of living somewhere else temporarily, food, and more. Check with your policy to find out how long it will cover additional living expenses, and if it caps the amount the company will pay.

Personal Injury coverage

When you visit your apartment to introduce yourself, your nosy neighbor slips in your area on some raspberry yogurt and knocks herself unconscious. She hits her head on a post and needs a few stitches. Your renter’s insurance will cover your liability for her injuries. It typically provides liability coverage from $100,000 to $500,000, which is ample. If you desire more or less, you can purchase up to $2 million or as little as $50,000 in liability coverage.

Getting a renter’s insurance is essential for every tenant as it provides coverage for your personal belongings wherever you are. Besides, renter’s insurance provides liability coverage if you accidentally cause injury to someone.