We know finding and renting a house is a struggle. But when you find the right home for yourself, you must get the renter's insurance as it will reduce the financial risk you might have as a renter. There are a lot of people who think that this insurance is not necessary and there won't be any benefit from it.
However, there are a lot of significant benefits that you can get if you have these renter's insurance. If you want to know what renter's insurance is and why you need it in your life, let's jump right into the article and look at it.
What is Renter's Insurance?
Now, you might be thinking about what renter's insurance is. This is also called the tenant's insurance. Renter's insurance is a way through which you can protect your personal property that you are using in the apartment or condo that you have rented. There are a lot of different things that are present in your home. However, the main three things that come under this insurance are the electricity in the house, the clothes, and the furniture.
There can be a lot of circumstances in which you might damage the property, such as theft, fire, or even sewer backup. In such cases, the insurance will come into action, and they will help you cover the cost.
Other than this, the insurance can help protect you from liabilities, for example, if you get injured on your property or someone is injured. Hence, the renters must get this insurance while staying in a rented property as it can help them in many different situations.
Reasons Why You Need the Renter's Insurance:
The following are some of the most significant reasons you should get the renter's insurance.
Protection of Personal Belongings:
We know it takes hundreds of dollars to set up an entire home. After putting so much money into your home, what if something happens and the things you love the most get damaged? The pain you will feel to replace them and spend more money is where the renter's insurance can come into action. If your personal belongings get damaged due to fire, theft, vandalism, or any other reason, the insurance will cover it all for you.
It’s Affordable:
Many different types of insurance are on the market, such as life, pets, cars, and many others. However, people don't like getting insurance because they think it is expensive. However, this is not the case with the renter's insurance. This is considered one of the cheapest insurance, costing around $30 to $50 per month.
You must understand that the prices can fluctuate according to the coverage you will be doing, the type of coverage, and a few other factors. Still, it is the least expensive insurance that you can have.
Requirement of Landlord:
The landlords also have their own insurance,. However, that covers the land and the structure of the house. That insurance will have nothing to do with your belongings. This is why many landlords want the tenants to have the renter's insurance.
This avoids any future problems for the landlords, and the tenants will also have no right to ask the landlord for the money for the damage to their items.
Liability Coverage:
The standard tenant's insurance also has liability coverage. This means if you get injured on the property, or someone else gets injured,, they will cover the expenses. This means the court, legal, and medical expenses can be covered. However, there is a specific policy limit in which the cost will be covered.
Coverage While Traveling:
If you have the renter's coverage, it will cover them wherever your belongings are. This means whether they are in the house, in a car, or even with you while you are traveling, the coverage will cover the cause of the damage. Even if the belonging gets damaged or stolen while traveling, you will get the money back for the protected belongings.
Covers Additional Living Expenses:
There can be situations when the house you have rented becomes inhabitable, such as the presence of black fungus or perils. In such cases, when the tenants have to move from their home to a temporary place, the insurance helps cover the cost. Different things can come here, such as the additional cost of living on the site, food costs, and all the other stuff.
But you need to ensure that your insurance offers this coverage as they do not. So make sure you are reading the policies correctly, and if you want to add this, you have to speak to the insurance provider.
What is not Covered by the Renter's Insurance?
Now that you know the reasons why you should have the tenant's insurance, you should know the things that do not come under this kind of insurance. If your personal belongings get damaged by natural causes such as earthquakes, floods, etc., then this won't come to the insurance.
If you have a roommate, the insurance won't cover their damage until and unless you mention their name in the policy. Another thing that the insurance won't cover is the damage caused by your pets. If your cat scratches the furniture or your dog chews on things, this won't be the insurance providers' headache.
Wrapping Up!
When you rent your own apartment, one of the smartest moves you can make is getting a renter's insurance. This can be very beneficial for you as it will allow you to get coverage on your belongings if anything gets damaged due to theft or any other reason. Hence, we hope this article was beneficial for you in learning about the tenant's insurance, how it works, and why you need it.
