By renting a house or an apartment, you only have few things to worry about. If you experience any house-related issues like clogged plumbing or faulty electrical connection, all you need to do is call the landlord to fix them.
However, even with the security of a landlord, you should still consider keeping yourself insured and protected. Certain situations such as burglary or fire may happen. Most renters often think that everything they have inside their rented space is insured under the owner’s policy. Unfortunately, the insurance only covers the house or apartment itself.
This begs the question: is it necessary to get renter insurance? Or, to be more precise: why should you get renters insurance?
Why Renters Insurance is Important
According to a poll conducted by ORC International in 2016, only 41% of all renters said that they have renters insurance. This represents a drastic increase from 29% back in 2011. Still, the number is relatively low. If you belong to the 59% who don’t have renters insurance yet, it’s about time you get covered.
Here are a few good reasons why:
1. Renters insurance offers protection for you and your belongings
Renters insurance is similar to that of homeowner’s insurance, except that it’s designed for renters. As mentioned earlier, most renters think that their landlord’s insurance also covers their personal stuff. However, this is not the case. Renters insurance is instead available to provide coverage to areas that a landlord’s insurance cannot.
Based on a report by esurance.com, an average renter will have at least $20,000 worth of belongings. With renters insurance, you can protect yourself from losses to your property, which includes your clothes, electronics, furniture, and just about any stuff you own.
2. It’s more affordable than you think
Another main reason why you should get renters insurance is because it’s affordable. In fact, affordable renters insurance will often cost you only a few cents per day compared to other insurance coverage types.
Additionally, if you add it to your current insurance policies, you’ll end up saving more!
3. Insurance will cover you against possible liability claims
Liability coverage is yet another important aspect of renters insurance. It offers you the protection you need in the event someone is injured in your residence
On average, you can expect at least $100,000 worth of liability coverage, including around $1,000 to $5,000 coverage for medical expenses. You can also request a higher coverage limit with an additional charge.
If you require a liability coverage of over $300,000, you can ask your insurance company for an umbrella policy. This will grant you an additional $1 million coverage (for an extra expense).
4. It also covers additional living expenses
In the event your space becomes uninhabitable due to certain factors (e.g. natural disasters), your renters insurance may offer you additional living expenses for a given time period that you’re displaced. These can include a temporary living place, food, and several other essentials. However, each policy may vary; hence, you need to check how long yours can cover your additional living expenses.
Renters insurance can provide you all the coverage you need when renting a house or apartment. However, you have to first clarify what your policy covers and inquire local agents about any available discounts and coverage limits.
