Top 9 Reasons to Get Renters’ Insurance
It is common knowledge that homeowners’ insurance is one of the basic things a homeowner should secure as soon as they buy their first home. As the name implies, homeowners insurance offers protection for the property owner. It covers the cost of repairing or replacing the property for damage or loss. In the event of theft, it also offers coverage for personal belongings. But what if you’re renting? Does the homeowner’s insurance cover the renter’s personal belongings? And which company is the best to get renters insurance from?
Best company to get renters insurance
Renters’ insurance covers the personal belongings inside the structure (which would naturally belong to the renter or tenant) This is why tenants do not get a renters’ insurance policy to protect their personal belongings or protect themselves against personal liability claims. A homeowner’s insurance policy covers the property’s structure but does not cover personal belongings.
It’s important to know who has the best coverage for renters insurance. This always depends on what you want coverage for as many providers may let you add a few bits and bobs here and there. Here are the top seven reasons why it is very important to get renters’ insurance.
Making the decision to buy a property or just rent is really life changing.
Here’s a good read you may just help you decide: 5 Things To Consider Between Buying or Renting a House
Protection for your personal belongings
A renters’ insurance policy offers the policyholder coverage for losses or damage to personal belongings. If let us say, you work from home and you lose your work equipment due to theft and it will cost you $3,500 in total to replace it, your landlord’s homeowner’s insurance will not cover that, but renters’ insurance will.
Aside from theft, your policy may cover repairing or replacing your personal belongings for damages or loss due to fire, lightning, explosion, riots, falling objects, smoke, vehicles, and the weight of ice or snow, among others. Note that renters’ insurance policies can also cover appliances or equipment. These include heating and air conditioning systems, and even sprinklers, which can be affected by very low temperatures. You may also have coverage against theft for the personal property stored in your car or somewhere outside your rented property. If the basic policy does not, ask about coverage for extended theft.
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Protection for your guests or against personal liability claims
Renters’ insurance does not only cover your personal property. It also protects you against liability claims if anyone is hurt due to an accident while within your premises. If, for example, you leave your garden hose lying around in the grass and a delivery man trips because of it and hits his head on a rock, you might actually get sued for it. The personal liability coverage part of a renter’s insurance will help cover court expenses, defense fees, and other lawsuit-related costs.
Similarly, if you have a dog and it happens to bite a guest, some states would require the pet owner to cover the medical expenses. And even if the state did not require it, your conscience most probably would.
Replacement or repair of personal property damaged because of natural disasters
Nobody wishes for natural disasters to happen, but they do. And when they happen, one might lose everything, especially in areas where earthquakes, tornadoes, hurricanes, and wildfires happen more often.
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Coverage for extended fire
A fire that starts from a condo unit or an apartment can spread easily and can cause damage to the properties of other occupants. If this happens, you can expect to be found liable for any damage to their property and it sure would be good to have a policy in place.
Repair or replacement of property damaged by yourself
There might come a time when you unintentionally damage your own property. Whether you ruin your rug because of water overflowing from the washroom or something screwed to the ceiling falls. If it then damages the sofa, you can call it in and your insurance provider will shoulder the cost of repair or replacement, depending on the specifics of your policy.
Coverage for living expenses while the rented space is inhabitable
A renters’ insurance policy will also have coverage for situations where you are ‘forced’ to rent another space. You will incur additional living expenses for reasons covered in the policy. For example, when the property becomes uninhabitable due to flood or fire.
This has always been a great question and we provided some answers:
Do I Really Need to Carry Renters Insurance?
Very affordable peace of mind
As of 2019, 37% of US households rent, and only 40% of these households have purchased renters’ insurance even when the average cost of a policy is only $15.58 per month. In North Dakota, one can get a policy for about $9.58. Some companies even purchase insurance with their top executives as the insured if they know that the company will suffer financial losses if anything happens.
For $10 or even $20 a month, would you not want to have the peace of mind that a renters’ insurance policy in place? It could help you shoulder unexpected (and definitely unwanted) expenses or might even help you replace everything in your home which could easily amount to $20,000. Bottom line is, an insurance policy is wiser to see it as an ‘investment’ with the purpose of shielding yourself from financial troubles.
Renters insurance is never exciting.
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When buying renters’ insurance, there are a few important things to remember:
- Insurance coverage for personal property is separate from personal liability insurance.
- You can choose to pay monthly or annually, but if you can afford to pay annually, this assures you that your policy is active and in place at any given time of the year.
- Insurance policies are not one-size-fits-all. Depending on your assets, personal circumstances, net worth, and budget, you can increase or decrease your coverage.
- You can always ask about ‘riders’ or additional coverage on top of the basic policy.
- Ask about caps. Some coverage might have caps on the amount the insurance provider would shoulder.
- Check your options. Many insurance providers can give you quotes online or brokers who can help you choose the best coverage depending on your needs.
Advantage Insurance Solutions is a top independent insurance agency in Denver, Colorado. Let our team be your insurance advantage to help you find the best company to get renters insurance from.
Call or text us today at (720) 221-8168.