Here’s What You Need to Know
If you’re a first-time renter, you might be trying to save money anywhere you can. However, while there are some expenses you can cut, such as a subscription to every food delivery app ever, there are some you can’t. Renters insurance is the renter’s equivalent of homeowner’s insurance, and everyone should be covered in case of a fire, flood, theft, or damage to your apartment that’s out of your control.
When considering whether or not to invest in renters insurance, ask yourself whether you could afford to replace all of your technology, including your desktop, laptop, television, and stereo, if your apartment caught fire or flooded. Would you be able to replace your phone if it were stolen from your apartment during a robbery?
While you might have enough money saved up for emergencies just like these, renters insurance prevents you from paying out of your pocket if anything happens to your belongings in your apartment. Unfortunately, renters insurance can’t predict the future, but it can make things easier if disaster strikes. Here are the reasons why you need renters insurance.
Landlord Insurance Won’t Cover You
Whether you’ve moved into your first apartment or your tenth, you may not know that your landlord’s insurance won’t cover your housing or belongings if there’s an unexpected disaster. Landlord insurance covers the structure of the building, not your personal belongings, so they won’t pay out if your television gets stolen or you lose your belongings in a kitchen fire.
Additionally, if something happens to someone else’s belongings or home because of something you did, the landlord doesn’t cover those costs either. For example, if you left the tub running while you stepped out and it flooded the apartment below you, the landlord’s insurance won’t cover the cost of replacing any of your neighbor’s things. If you cause damage to the apartment below, next to, or above you, you can be sued by the landlord or the other tenant.
Basic renters insurance protects you in ways your landlord’s insurance won’t. Liability coverage typically starts at $100,000, which can help pay for any damages you may have caused to another apartment.
Your Belongings Are Worth More Than You Think
When people look at their things in an apartment, they might believe they don’t have much to insure. For example, you might have a computer and a television that you paid good money for but nothing else. You’d be wrong to assume your belongings are worthless, though. Everything in your apartment, from the shirts you still haven’t put away after moving in, to the dishes in the sink waiting to be washed, is worth money, and your belongings can cost you thousands of dollars to replace.
Insurance Pays for Temporary Housing
If something happens to your apartments, such as a flood or fire, and the landlord needs to fix the apartment before it’s safe for you to live there again, a renters insurance policy can pay for temporary housing while you wait for it to be repaired. Most policies offer an additional living expense benefit that will pay if you can’t live in your apartment for major reasons, such as water damage or fire. So, if you have to stay in a hotel for a few weeks, your insurance will cover it and save you thousands of dollars.
Protects Your Finances
Renter’s insurance will protect your financial health by ensuring you won’t have to pay thousands of dollars out of your pocket to pay for repairs or replace your stuff. You need your money for other goals, such as buying a house, getting out of debt, or paying for retirement, so you can’t afford to spend all your money replacing the items you need after a fire, flood, or robbery.
Remember, if you’re sued, you might be sued for tens of thousands of dollars, depending on the damage you’ve done to someone else’s home. If a court says you are responsible for the damage, your insurance policy will cover you, at least in part. If you don’t have insurance, you’ll have to pay for all expenses out of pocket, which can leave you bankrupt or in more debt.
Covers More Than Just Home
Renters insurance covers items that aren’t in your rental. For example, if your laptop is insured through your renter’s insurance policy and is stolen outside of the home, such as at a local coffee shop or the library, your insurance may cover you. Of course, it only makes sense to file a claim if the item you lost is more than your deductible. At the very least, renters insurance can provide you with peace of mind.
Renters Insurance is Affordable
If you can afford the cost of rent, you can afford the cost of renter’s insurance. Many people pay less than twenty dollars a month to ensure coverage on all their belongings, making it more affordable to purchase insurance than it would be to replace just one of your personal belongings. To make renters insurance more affordable, you can also keep your car safe by bundling your renters and auto insurance into one plan. Depending on your insurance provider, you may also be able to find discounts depending on the safety of your apartment building.
Additionally, if you have renters insurance and later purchase a home you can receive additional discounts and savings or get a better deal on homeowners insurance since you’ve built up credit.
Getting Insured is Easy
Getting renters insurance is easy, and many companies allow you to get insured in just a few minutes online by answering simple questions, including the types of items you want to ensure, where you live, and whether you want someone else on your policy. In many cases, you can get renters insurance almost instantly after submitting your answers, and you’ll be covered as soon as you pay your first premium.
When shopping around for insurance consider We Insure Pros. They can provide comparable estimates, guide you through the types of coverage you need, and work within your budget. We highly recommend them.
Is Renters Insurance Worth It?
Renters insurance is worth it for anyone renting a space who wants to protect themselves from liability. Not only can renters insurance save you money in case there’s an unforeseen constructional disaster, but it can also provide you with peace of mind knowing you’ll be able to protect your finances.
Ashley Nielsen earned a B.S. degree in Business Administration Marketing at Point Loma Nazarene University. She is a contributing writer at 365businesstips.com where she shares knowledge about general business, marketing, lifestyle, and financial tips. During her free time, she enjoys being outside, staying active, reading a book, or diving deep into her favorite music.