What Exactly Is Renters Insurance? Why Do I Need It?

What Exactly Is Renters Insurance? Why Do I Need It?

What is Renter’s Insurance?

What Is Renter’s Insurance?

Renter’s insurance is property insurance that provides coverage for a policyholder’s belongings, liabilities, and possibly living expenses in case of a loss event.

For example, in the event of a fire, the policy would pay for the replacement of personal belongings, paying for a hotel room and food while the policyholder is displaced, and paying for home or car repairs that result from smoke or fire damage to a covered unit. It is important to remember that not all landlords are required to carry renter’s insurance. In fact, many are required by city zoning regulations.

Why do I need it?

As of 2017, there has been a 25% increase in rents. This is likely why renters insurance was a hot topic in the business world last year.

What is included in a renters insurance policy?

Renter’s insurance covers your belongings and potentially your living expenses for up to 7 days in the event of a loss event. However, your policy will only offer up to $1,000 in coverage of your belongings.

In addition to your belongings, renters insurance will protect you from liability from your belongings or the building, home, or premises on which you’re living. An example of liability coverage is covering someone for damaging a wall while taking a shower.

The Benefits of Renters Insurance

There are benefits to having renters insurance including the following:

Cost savings. Insurance typically costs more than you think. To cover the equivalent of what you might need, you need an extra $100,000 of coverage. The average price of this insurance policy in 2016 was $625, and $530, according to Insurance Information Institute.

Insurance typically costs more than you think. To cover the equivalent of what you might need, you need an extra $100,000 of coverage. The average price of this insurance policy in 2016 was $625, and $530, according to Insurance Information Institute. Liability coverage. You can’t be sued if your things are stolen, damaged or lost because of your negligence, but your renter’s insurance can provide reimbursement for unpaid utilities, damages and so on.

How Much Does it Cost?

This varies depending on the type of renter’s insurance you have, what area of the United States you live in, and the amount of coverage you need. Prices are determined by the total value of your items, property, and living expenses. A homeowner’s policy tends to cost less, but a renter may also qualify for additional renter’s insurance for free, if they meet certain requirements. For example, a renter may be eligible for renter’s insurance because the home is either rent-to-own, or he or she lives in the home as a paying guest. The exact requirements will vary depending on the policy. In many states, renter’s insurance rates will be as low as $4 or $5 per month.

When Should I Buy It?

While most insurance companies offer renters insurance, it’s usually not an add-on for renters to have to buy. Buyers of a home, for example, typically choose their homeowners insurance policy first and then add renters insurance on as an add-on later. It’s important to find out what’s required before buying, though, because not all insurance companies offer coverage to renters.

Can Renters Insurance Help Me Save Money?

As a renter, the cost of insurance can be steep. You can spend several hundred dollars to insure just your renter’s insurance and then several hundred more for the general liability portion of your insurance.

Conclusion

Renters insurance is relatively cheap compared to home owner’s insurance and will provide coverage for everything inside the house and what it’s built with: appliances, electronics, household items, furniture, jewelry, jewelry boxes, purses, and firearms.

Have you ever rented a house or an apartment? Have you ever lost your things in a break-in or other event?

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