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Renters Insurance is Needed and Often Required

Renters Insurance is Needed and Often Required

July 06, 2020
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Buying Renter’s Insurance is very easy and inexpensive. Often, just a call to our office is all that is needed. But many renters forget about or do not feel the need for renters insurance. Tenants frequently have a false sense of security thinking that they will automatically be covered if something were to happen to the home that they are renting. 

Apparently, the landlord’s policy doesn’t cover the renter’s valuables because they operate on their own. Before you can sign up for the leasing contract, they require their renters to secure their own insurance. Many young people fail to buy renters insurance because they mistakenly think it's too expensive.Please do not wait until it is too late, purchase renters insurance today.

What is Renter’s Insurance?

Renter’s Insurance covers the damage to your personal property or if it is stolen. Your landlord wouldn’t be responsible if someone stole your personal stuff unless they didn’t provide locks for his apartment. This type of insurance would cover your things from the damage caused by fire and other disasters covered by your policy. It would also cover the cost of the items lost to replace them.

It’s a good investment that will protect you from living in an apartment or a house. It has three coverage types that will safeguard your belongings and yourself from loss.

What does renters insurance cover?

Renter’s insurance or tenant’s insurance covers events that might happen unexpectedly, misfortunes you’ll never avoid coming. Certain events like theft, fire, a guest’s injury, and other perils that you cannot control are covered to protect you. Listed below are the types of coverage of a renter’s insurance.

  1. Personal property coverage covers your personal belongings from damage and the cost of its replacement. The damage, however, depends on what is specified in your policy. It will pay the maximum amount declared in your coverage limits for your personal property loss. 
  • Renters insurance covers your personal property such as clothes, computers, electronics, furniture and more. If your property is damaged in a fire, renters insurance can be there to help you. 
  • Theft is one of the events that will create a big loss. Renter’s insurance may help to replace what is lost from you. The policy also covers your property when it is away from your home; for example, if your laptop is stolen or damaged due to a covered peril when you take it with you on vacation.
  • This coverage has limits too. There are certain things like jewelry and expensive possessions that may not be covered. For this instance, you may opt to buy additional coverage for your belongings.
  • Deciding on renter’s insurance purchase needs a proper inventory of your valuables so you may be able to assess how much of this coverage you need. 
  • There are two types of personal property coverage that you can choose from. There’s actual cash value- the one that covers your assets with their present market value and its depreciated cost; and replacement cost that replaces your loss with its current price. Always buy replacement cost coverage on your property. This will reimburse you for the full cost of replacing your possessions. An insurer will not depreciate the value of your possessions in this coverage.

  1. Liability coverage covers the damage you incur to other people or their property. Renter’s insurance has this type of coverage to protect you from inevitable situations like these that will help you from spending on certain costs.
  • Renters insurance covers your personal liability. If someone is injured while in your apartment or condominium you can be held liable. You may be responsible for medical bills and could be subject to a lawsuit.
  • The same with the personal property coverage, liability coverage has limits too. Always review and read your policy to be aware of the coverage ensuring that what it provides matches your needs.
  • Additional living expenses cover to pay additional costs you need in an event of a fire or other reasons that will put you to live temporarily in a hotel. 
  • If your apartment building is destroyed by a fire, you may need additional living expenses and renters insurance can provide that too. Your policy can pay for necessary increases in living expenses incurred so that your household can maintain its normal standard of living.
  • Check your policy and understand what are the risks covered and how much is the coverage for the additional living expenses. Typically, this coverage pays more than the amounting price of expenditures you will incur.

Other reminders

  1. Purchasing renter’s insurance may not be important as what you think it is, but remember that protection against uncontrollable events is better. 
  2. Your insurer pays for the loss but before that, you need to pay for the deductible. It only means that you need to spend money on the item that is covered before they help. Also, you’ll pay more for deductibles if you have lower premiums.
  3. Renter’s insurance is not expensive. You’d only have to spend at an average cost of $12-$15 a month. A small amount for a great purpose is something to consider. It’s less expensive than replacing your loss all at once.
  4. It is smart to shop around before you decide to settle on one insurance company. All of them offer renter’s insurance but they offer different quotes so be wise in choosing. Look beyond the price and read carefully.
  5. Flood and earthquakes are not covered by a standard renter’s insurance. You may choose to buy additional coverage for that especially if the location of your chosen apartment is prone to these kinds of disasters.

Renting a place to live in has never been comfortable without the security a renter’s insurance can provide. Imagine the stability of the company you can depend on when mishaps happen. Isn’t it great to know that with an affordable price, you can avail of the protection you need while you rent? Our renter’s insurance rates are extremely competitive and may even give your car a discount if you sign up with us.

  

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