It’s perfectly natural for most first-time renters do not understand the benefits of renters insurance.
Most think the insurance that the landlord has on the dwelling will cover them. After all, they don’t own the home they are living in. But unfortunately, they are wrong. Rental Dwelling Policy’s only cover the home itself on behalf of the homeowner. Not the renter. The renter must get renters insurance to protect their belongings. Your personal property is the renter’s responsibility, so if there was any loss or damage caused by theft, vandalism, or fire typically will never be covered by the landlord’s policy. So what exactly are the benefits of renters insurance besides peace of mind?
Generally, renters insurance isn’t very costly. You can rent from large companies such as Statefarm, Allstate, USAA, or small local insurance companies if you choose. According to Insurance.com, most policies cost renters about $326 a year, which equals about $27 a month. You will want to check with your landlord or property manager to see if there is a specific dollar amount you must insure for. But on the national average, this is what you will expect to pay.
Your landlord will require it most likely.
You will find that most landlords and property managers require renters insurance. You will find this in your lease, and you will also have to provide proof of insurance. Why is this a requirement? Well, it minimizes the risk first off; this shows landlords that you will respect the property and sometimes can even help make any risks of pets with property damage coverage, according to the Canine Journal.
It covers quite a bit.
Renter’s insurance covers your personal belongings. It doesn’t matter if they are in your home, car, or with you while you travel. Your personal possessions can include things like furniture, clothing, electronics, and appliances. You will also find that renters insurance covers liability as well. Depending on your individual policy, the amount will vary. But liability covers a renter against lawsuits for any injury that happens or damages to anyone who visits your home, including no-fault medical coverage. Additional expenses can also be covered by your renter’s insurance, such as hotel bills, restaurant meals, or other living expenses if your home becomes uninhabitable due to a covered incident such as fire or other covered hazards.
Know what Renters Insurance doesn’t cover
While understanding your benefits of renters insurance, it’s even more important to understand what it doesn’t cover. While renters insurance covers quite a bit, it doesn’t cover everything you might hope for. If you have pet’s you will want to make sure you understand that while it may win over the ability to rent with your pet, renters insurance won’t cover any damages done to the home or your personal items. So, put away those expensive shoes and cross your fingers your dog doesn’t chew on the floorboards because you will sadly get stuck with that bill.
You also want to make sure you understand where you are living. If your home is in an earthquake area or a flood area, there are earthquake and flood policies you must take out. Standard renters insurance does not cover damage caused by those. Other things to understand are things like high-dollar items like jewelry are not covered either. Separate policies for jewelry will need to be taken out. Lastly, we address roommates. Generally, it’s essential to understand that your policy does not cover your roommates’ belongings. It’s highly suggested that your roommate get their own policies
Learn more about how having a renters insurance policy changed a family’s life here.