Many people rent a place to live so they don’t have to worry about the cost and headache of home ownership; insuring a home is one of those big costs.
Yet you are not totally free from needing insurance if you rent; renters insurance is there to protect you even if you don’t own the house or apartment you live in.
Is buying a renters policy from a renters insurance agency actually worth its cost?
Based on how affordable it is, you will have inexpensive protection for your personal property that is not covered by the homeowner's insurance should you suffer a loss.
Homeowners Insurance Does Not Cover Tenant Property
The most important thing to understand about both homeowners and renters insurance is that in a rental situation, they pay for different things to different people.
A homeowner's policy pays the owner of the home or building for damage to the building; a renters policy pays to repair or replace personal property owned by tenants.
If the homeowner lives in the home and rents part of it, their policy pays for their personal items but not the belongings of any tenants.
Renters Insurance - Personal Property Insurance for Tenants
A renters policy purchased from a renters insurance agency is a tenant’s version of personal property coverage that is included in a normal homeowners policy.
It reimburses the tenant up to the policy limits if their personal property is damaged or destroyed due to fire, smoke, lightning, autos or aircraft, falling objects, snow or ice, certain water damage caused by utilities, electrical surge, explosions, vandalism or theft, and other covered losses.
It’s important to note that like homeowners insurance, renters policies also do not include coverage for flood or earthquake.
Those living in areas where these events are possible can purchase additional coverage for their property in case it is damaged this way.
Renters Insurance Protects More Than Just Personal Property
In addition to reimbursing you for damage to or destruction of your personal property, a renters insurance policy provides you with other benefits that many people do not even realize are there.
You also have liability coverage in case someone is injured in your dwelling or you or a family member cause property damage or bodily injury to someone.
You also get living expenses coverage in the event that your apartment is damaged and you must stay somewhere else for a while plus buy meals and other living essentials.
Renters Insurance Offers High Coverage At Low Rates
Considering that most renters insurance policies only cost a couple h
undred dollars a year, you get a lot of protection for that money.
Most policies available from renters insurance agencies start at $50,000 worth of coverage and can be increased as needed.
With a renters policy, you can rest assured that no matter what happens to the building you live in, if your property is damaged or destroyed, it is covered.
The added liability and living expenses coverage makes dealing with mishaps that can affect your living space even less costly.
It is certainly efficient protection that anyone renting can invest in!