Most people know the importance and necessity of auto insurance or homeowners insurance, but renters should also know the importance of renters insurance. Most renters do not invest in renters insurance because they do not believe they will need it, but renters insurance can be more valuable to you than you may know.
What is Renters Insurance?
Renters insurance is a policy that offers crucial financial protections for renters in case of burglary, vandalism, or damages from natural causes. Renters insurance protects you from the cost of replacing what you own from damages, destruction, or theft. A landlord’s insurance policy will not cover the belongings of the renter; it will strictly cover damages to the building and property. Renters insurance will provide you as the tenant with financial protection in unfortunate events.
What Does It Cover?
Insurance policies cannot protect or replace valuable possessions with sentimental attachments, but they can help you financially as you recover from a misfortune that falls upon your home. Renters insurance will help you with the cost of replacing the things you own, such as furniture, electronics, or clothing within a rental property. Among the applicable causes of covered property damage are the following:
- Natural Disasters: wildfire, tornados, hail, earthquakes, flooding, hurricanes. Some natural disasters, such as flooding, will require additional coverage so make sure to be well informed as to what is covered in a standard policy. You should also do some research and find out what natural disasters you are at risk for in the area you live in to make sure you have adequate coverage.
- Unnatural Disasters: fires due to electrical issues, flooding from plumbing issues or accidental water overflow, damage from sewage issues.
With renters insurance, you can relieve some of the financial stress that comes when disaster strikes.
Renters insurance does not cover damages or destruction to the building or property as a result of a break-in, natural disaster, or other unfortunate issue. It can, however, cover unintentional damages caused by yourself or someone living in your home. For example, renters insurance can cover damages to the property caused by an accidental fire or flood where you are found to be at fault. With a sufficient policy, you can cover resulting costs from damaging accidents for both your property and the landlord’s.
Renters insurance can also cover medical bills for guests who are injured in your home. Just as auto insurance can cover the medical costs of another person from an accident involving your vehicle, renters insurance will cover costs for accidents involving guests in your house. Renters insurance does not typically cover medical expenses for anyone living in the home, but some policies can be customized to add that additional coverage. It can also cover medical bills for a guest who gets bitten or otherwise injured by your dog.
In the event of property loss and damage, renters insurance can also provide you with “Loss of Use” coverage. Loss of Use will pay for expenses such as hotel stays, restaurant, or other living expenses resulting from loss of use on the rental property.
Important To Remember:
Applicable coverage on any insurance policy depends on the plan you choose and what you are willing to pay. Standard plans will cost the least, but also cover the least. For expensive valuables, you may need to pay for additional coverage. Likewise, you may need to pay for extra coverage to provide for natural disasters that are not provided for in standard coverage.
Shop around and gather as much information as possible to give yourself the best value for your money as well as the best protection.