Renters insurance is a kind of property insurance offering protection to tenants living in a rented dwelling. The policy offers coverage for personal property and liability claims, which are not due to structural issues of the property. Though renters insurance is not a legal requirement, many landlords get it to provide some tenant coverage.
Many tenants overlook renters insurance until something untoward happens and they suffer property loss. Let’s learn the reasons why you should not skip renters insurance.
Why You Should Not Skip Renters Insurance
Mentioned below are 6 reasons why you should not skip renters insurance.
Things You Own Are More Than What You Think
Most people believe they don’t need renters insurance since they don’t have stuff that needs protection. But insurance experts advise that you check your home thoroughly and inventory your things, such as clothes, electronic items, important documents, and other stuff. Calculate the total worth of the possessions. If you lose these items in an accident and have no insurance for backup, it might be a considerable loss.
The Landlord’s Insurance Will Not Cover You
Many landlords ask their tenants to have renters insurance. But if your landlord doesn’t ask you, ask them specifically about the insurance. A landlord’s insurance protects the building structure but not the tenant’s personal belongings. The landlord’s policy will not be of much help if, as a tenant, you damage a neighboring apartment accidentally. Renters insurance is inclusive of liability coverage.
Get Protection for Your Finances
Renters insurance is beneficial for getting protection for your finances. You might be saving for your house, building an emergency fund, or trying to get out of debt, but due to a lawsuit, you might lose all the saved money. Renters insurance can help you in dealing with the financial burden. Even if some unfortunate event takes place away from home, you remain covered.
Pays for Housing After a Disaster
In case of extensive water damage or fire, you should vacate the rented property and look for another place to stay till it is repaired. This is also called ‘loss of use’ or the benefit of ‘additional living expense’. In such cases, along with the hotel stay, the coverage also pays for restaurant meals and other expenses.
The Cost Is Not Much as You Think
The majority of people avoid renters insurance for the high costs. But the average cost comes to about $15 monthly. Sometimes you can bundle your renters insurance with auto insurance to reduce costs.
Offers Coverage for Belongings Away from Home
With a renters insurance policy, you can enjoy coverage for your possessions even when they are not at home. The policy will cover you if your phone is stolen at a store or your laptop is swiped at a café. This policy also covers items in storage. Getting Renters Insurance from Scautub Agency.