Even though you do not own your apartment, condo, or rented house, disasters can happen and issues may arise that leave you with little protection unless you have renters insurance. Ownership of a property does afford more natural coverage, and homeowners insurance is even a requirement of most mortgages and home loans. While some apartment complexes and communities require it, it is usually left up to the discretion of the individual. Explore these important reasons why you need renters insurance to protect your finances and future.
Renters Insurance Protects Personal Property
If something other than a natural disaster occurs in your apartment building or other rental home, you undoubtedly face a lot of damage to your belongings. Ruined electronic equipment, computers, clothing, personally owned appliances, and more can cost a lot of money to replace. This is one of the major reasons to get renters insurance. If you get full coverage for your property, the insurance policy provider will give you money for repairs and replacement.
- Catalog all of your belongings and property.
- Get a fair evaluation of everything with current conditions considered.
- Pay for sufficient coverage with your rental insurance policy.
Renters Insurance Covers Living Expenses
If the problem that occurs makes it impossible for you to stay in your unit during repairs or renovation, most renters insurance policies will cover a hotel stay or other accommodations for the duration. This makes a huge difference in your financial security when it comes to staying safe and comfortable in an emergency situation.
It is important to note that, for the above two instances, replacement of property or alternate housing is not included if your rental is damaged by a natural disaster like a flood or hurricane. These usually require additional coverage that costs extra.
Renters Insurance Protects You From Personal Liability
If someone gets hurt while visiting your apartment, condo, or rental house, you are responsible for their injuries and other damages unless it was caused by a structural fault in the building itself. Depending on your policy, rental insurance covers personal liability if someone else sues you for medical bills, pain and suffering, or other damages.
Landlords of both single-family homes that they rent out and massive apartment buildings or complexes always have insurance that covers their property. However, it will not cover anything of yours if a pipe bursts, someone is bit by your dog, or you lose your diamond ring down the drain. Renters insurance usually costs under fifty dollars a month and can protect up to or over $100,000. Of course, buy a policy that suits your specific needs the best.
Renters insurance is a must-have option for people who do not own their own home. It does not matter how little you have or the type of residence you live in. To protect your financial status and future, low-cost insurance policies provide an amazing safety net. Be sure to shop around and check for extra coverage for floods, fires, and storm damage if you live in an area prone to these problems.