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5 Reasons to Purchase Renters Insurance

ri-5If you rent your home or apartment you may not think you need renters insurance. However, many renters find out the hard way they do. Before you decide to skip this protection consider these five reasons to purchase renters insurance.

Reason #1:  No One Else Protects Your Stuff

A common misconception is that the landlord of the property’s insurance will cover any damage or losses to the renter’s property. In fact, your landlord’s coverage only pays for damage to the property itself. For example, if a tree falls on the house you are renting, damaging the roof and your property on the second floor then the landlord’s policy would cover the repair of the roof and the removal of the tree but not the damage to any of your property.

Without renters insurance, you have no financial safety net if your property is damaged or destroyed within the rental dwelling.

Reason #2: Covers More Than Property

Renters insurance like homeowners insurance also protects you in the event someone is injured on your property. If a neighbor’s child trips on the stairs and breaks a leg, you could be sued for damages. Your renter’s insurance liability clause, however, would cover the damages up to the limit of your policy. For serious injuries, this insurance could be a financial lifesaver.

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Reason #3: Theft Compensation

While we know insurance can be helpful when our property is damaged, we may not consider how useful it can be in the event of theft. Renters insurance protects you financially when your property is stolen, even if the property is not taken from your home. Here’s an example: Your daughter takes her laptop to school and it is stolen. You can file a claim for reimbursement through your insurance agent even though the theft took place on school grounds.

Reason #4: Covers Living Arrangements

If something happens to your current home like a fire, where would you go? Many families end up squeezing into a relative’s home or paying for a hotel room. The latter is usually the more comfortable option but because of the expense it may not be a viable alternative. Renters insurance usually covers the cost of housing. How much of the cost will be covered depends on your specific policy and its coverage limits, but at least you’ll know you will have a roof over your family to start with.

Reason #5: Affordability

When we think of insurance, we immediately think of high premiums. Renters insurance, however, is actually quite affordable. Most renters pay less than $200 a year for this coverage. If you combine insurance policies with the same company, you’ll pay even less. Plus, you can always adjust the policies to better fit your needs, including raising deductibles, increasing liability limits, and adding extra coverage for jewelry or electronics.

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