Many renters think a benefit of not owning a home is skipping out on the costs of home insurance. However, as a renter, you should still consider having insurance. Accidents such as a fire or a burglary can create serious liabilities or money shortage. You can cover all your belongings with renters insurance without breaking your bank.
Here are the reasons why opting for a renter’s insurance is actually a good idea:
- It’s inexpensive!
Compared to a regular home insurance, tenants insurance is inexpensive, hence affordable by all. Renters insurance is known to be the least-utilized insurance coverage available despite the fact that it is also one of the most affordable. If you are on a tight budget, you may find it difficult to justify spending money on a policy that is not required. However, it is a good idea to investigate how much renters insurance costs to see how sensible and low cost this protection can be.
- Your landlord’s insurance policy won’t cover your belongings
Often, renters assume that their property’s insurance policy covers them in the event of trouble, such as a fire, flood, power outage that damages personal property, or burglary. Only when the worst happens do they discover that the landlord’s policy only covers the building, not the tenant’s personal property. While your landlord may have insurance coverage on the building, that insurance is in place to protect the structure and the landlord’s own personal liability in case someone is injured on the property – not your possessions. As a renter, you should carry your own tenants insurance to protect your belongings from potential risk.
- It Fills Coverage Gaps
Renters insurance can also fill gaps left by your other policies, like your auto insurance. For instance, you leave your laptop in your car one night after work. You come out the next day to a broken window and a laptop-less car. If you have auto insurance, the window might be covered; but most of the companies do not offer coverages for the things which were kept inside the vehicle. In this case, your renters insurance could help replace your stolen laptop.
- Replacement cost policies give more bang for your buck.
Some renter’s insurance policies provide actual cash value in the event of a claim. This means that the insurance company will pay what your property was worth at the time of the theft, damage, or loss. Since personal property depreciates, this could leave you very low on funds for replacing your property with a brand new purchase. In contrast, replacement cost or replacement value policies pay the amount it will cost to replace the lost or damaged item at current prices.
- It covers your liabilities
Tenants insurance is a liability protection that covers you from accidental expenses. Accidents, such as a flood in your apartment may damage other tenants’ property and can be costly. Renters insurance can protect you from these situations and help cover those unexpected costs. “For example, if your bathtub overflows and water seeps into the apartment below, damaging your neighbor’s furniture or rug, your renter’s policy will cover the damage up to your liability limits,”
Maybe you don’t have a lot of things, but what if your apartment is damaged to the point that you have no place to live? You cannot stop accidents from happening, but with renters insurance you can surely prevent the accidents from affecting you. Find the best renters insurance options on Beneficial Insurance.