What is Renters Insurance and Do You Really Need It?
Most renters mistakenly think that their landlord’s home insurance cover will protect them in case disaster strikes. Well, that is far from the truth. The landlord’s home insurance only covers the building and not its contents. That is why you need renters insurance.
As a renter, it is good to ask yourself what would happen in case:
A thief breaks into your house
Your apartment building gets burned down
Your rented home suffers water damage
A guest slips and injures him/herself in your kitchen
Without tenant insurance, you will not have coverage for personal property damage or loss.
What does Renters’ Insurance Cover?
Renters insurance covers your damaged, stolen, or lost personal possessions. It also covers you against injuries to another person which may happen in your rented apartment or home. For instance, in case someone gets hurt in your apartment, as a result of your doing, the person can file a claim with your insurer to cover the expenses associated with the injury.
In case the injured party decides to file a legal dispute against you, the renters’ liability insurance will come in to pay for your legal fees, up to your policy limits.
Renters’ insurance can also cater for alternative living costs in case your rental home is rendered uninhabitable due to an insured claim.
How Does the Renters’ Insurance Work?
As mentioned above, renters’ insurance will pay your damages in case of a loss such as fire. The amount of repayment you will receive will depend on the kind of loss and how much coverage you have in place.
Certain items such as collectibles, jewelry, or any other valuables may have a price limit or require extra insurance coverage to offer full coverage for the loss or damage. Also, you will be responsible for an out-of-pocket expense (deductible).
It is important to note that the amount and cost of renters’ insurance you need is based on how much the property is worth. To be able to understand your coverage needs, it is good to ask yourself:
Can you afford to buy all your belongings in case they get destroyed?
How much are your belongings worth?
What will happen in case a liability lawsuit is filed against you?
Jump to top