If you rent your residence, you have probably heard of renters insurance and wondered if you needed to pay for this service. Some landlords or property management companies require their tenants to purchase a renters insurance policy. A common misconception is that renters insurance is not needed since the property owner likely has a homeowner’s insurance policy. But the policy that they pay for is for the home, not your belongings. Here are 4 reasons we think you should cover yourself with renters insurance.
THE COST IS WORTH IT—Renters insurance is very affordable. You can typically get a policy that works for you for under $20 a month. One mistake that some people make is undervaluing their belongings. Sometimes it seems like the things we own don’t actually cost that much, but if you look at what it would cost to replace a living room set, the $20 a month doesn’t seem that bad.
YOU GET LIABILITY COVERAGE—If you have a guest over that get hurts in your rental home and decides to hold you responsible for expenses and damages, if you have a rental insurance policy, you will be covered and not have to pay out of pocket for these bills. Most policies cover up to $100,000 in personal liability coverage, but you should double-check with the insurance company to find out what your policy limits are.
YOUR THINGS ARE COVERED OUT OF THE HOME TOO—This is a little known part of renters insurance. Your things are covered no matter where they are. If you take something out of your home and it gets stolen out of your car, you can file a claim to be reimbursed for a certain percentage of that item’s value.
LIVING EXPENSES WHEN YOU CAN’T BE AT HOME—If you are unable to stay in the rental home due a covered event, your policy will pay for your hotel and living expenses while repairs are being made. This is an important part of a renters insurance policy, so make sure the policy you choose has this included. Without it, you will be on the hook for finding a place to stay while your residence is being fixed.
Renters insurance policies are not all created equal. Get a few different quotes from different companies to find the best fit for you. And don’t forget, most policies will not include flood coverage. If you live in an area where flooding is an issue, we recommend you upgrade your policy to include flood damages.
We hope this helped you as you decide whether or not to purchase a renters insurance policy. If you have a move coming up soon, give Zippy Shell a call for a free, no-obligation estimate.