Renter’s insurance, also known as tenant’s insurance, is the type of insurance that protects people who make use of rental properties (whether residential or commercial). Usually, the renter pays the premium for this insurance. A standard renter’s insurance will cover additional living expenses (if the property becomes unhabitable), personal property, and liability expenses.
With the numerous benefits of having renter’s insurance, surveys show that most tenants do not have it. Some reasons tenants gave for not having renter’s insurance include they do not understand what it means, it is expensive, and their landlords’ insurance will protect them.
If you have similar or other thoughts preventing you from having renter’s insurance, this article is for you. Below, Keller n’ Jadd Realty & Management will explain numerous reasons you should have renter’s insurance.
Why do you need renter’s insurance?
1. The landlord insurance does not protect tenants
Most renters have the misconception that their landlord’s insurance will protect them during unexpected harmful events. However, this is not always the case. The landlord’s insurance only protects properties belonging to the landlord.
That includes the building and every accessory in the rental property that belongs to the landlord. From the above, you can see that it doesn’t provide coverage for tenants or the personal properties of renters. The only way you can enjoy protection is by having renter’s insurance.
2. Renter’s insurance is affordable
Although some tenants may initially think they have few belongings and a renter’s insurance is expensive, studies show that most tenants have more things than they think. If you do an inventory, you will be shocked to discover the total value for all the items. Looking at the value of your belongings, you will realize that the premium you pay is negligible.
The value you get from owning a renter’s insurance is massive compared to the gains. The average premiums for a standard renter’s insurance in the US range between $15 to $30 monthly. With that amount, you can enjoy the protection you need.
3. It provides liability coverage
Sometimes, you may have situations where your guests sustain an injury in your home, or your pet causes harm to people. If your neighbors or guests happen to sue you because of such issues, your renter’s insurance will handle it. It will cover medical bills and costs associated with court cases from issues in your apartment.
4. It covers losses to personal properties
The renter’s insurance will protect your properties from numerous perils, including falling objects, theft, civil commotion, riot, vandalism, explosion, fire, smoke, accidental and sudden damage from artificially generated electrical current, accidental water stream or overflow, lightening, freezing, hail, windstorm, volcanic eruption, the weight of snow, sleet, or ice, vehicles, and aircraft.
It is essential to note that the standard renter’s insurance does not protect against floods and earthquakes. You will need to purchase a separate policy to enjoy such coverage. Some insurance companies may not include wind damage in the standard policy. Confirm with your service provider and purchase an additional policy if you are in a hurricane-prone region.
5. It covers additional living expenses
Situations do occur where the rental property becomes unhabitable. It could be from major repairs, a fire outbreak, pest infestation, or other disasters. During such periods, you will need temporary accommodation while your landlord sorts out the issue. The renter’s insurance will cover every cost of getting temporary accommodation for a certain period, including your meals.
6. It protects your properties away from home
Even when you travel away from home with your belongings, they are still covered by the renter’s insurance. Sometimes your valuables may get stolen from the car or lost during a journey. You still enjoy the coverage. The renter’s insurance protects from theft and other covered losses even when they are not within the confines of the rental apartment. It would be best to consult your insurance agent for more insight, as it may vary between companies.
7. Some landlords require it
Most landlords know that you are not protected by the landlord’s insurance. They will not want to handle the enormous responsibility of protecting tenants from perils and liabilities. Therefore, they may make it mandatory for tenants to own a renter’s insurance before signing the lease agreement.
Sometimes, it may not be the landlord’s idea that renters should get it, but the landlord’s insurance policy mandates tenants to get it. In such scenarios, landlords will want proof that tenants have it.
When you get your renter’s insurance, it is essential to know that the claims process varies depending on the extent of the damage. Where possible, always document damages in writing and take pictures or videos. It would be best to contact your insurance agent immediately after a covered situation occurs to start the claim process.
