Do You Need Renters Insurance?
Monday December 11, 2017 - Insurance
Do You Need Renters Insurance?
For many tenants, renters insurance seems like an unnecessary expense. But for a nominal cost, it provides much-needed coverage after an unfortunate event. Your personal belongings are not covered by your landlord's insurance and
some may require that you have your own insurance before renting.
Many renters, even if not obligated to buy insurance, find it is worth the investment. It mitigates loss in the event of theft, fire or other calamities and gives you a place to call home in case of tragedy.
1. Liability Coverage
Typically, renters insurance covers property and personal liability. Your renters insurance will pay the claim if you inadvertently start a fire in the building, for example, or if a guest in your home trips and injures themselves. These can be expensive if you have to pay out-of-pocket.
2. Living Expenses
If damage to your apartment means you can't live there during repairs, renters
insurance can pay for you to reside elsewhere. Depending on your policy, coverage may max out after a certain period of time or upon reaching a monetary limit.
3. Coverage Off-Premises
All of your personal belongings are usually covered even when you take them with you outside the home. You can file a claim for theft from your car, for example. Most vehicle insurance doesn't cover this, so renters insurance may be your only protection.
The limitation of off-site coverage is much lower than for losses that happen in the home. If your overall claim limit is $25,000, you may only be able to claim 10 percent of the value of the items stolen from your car.
4. Affordable Premiums
The cost of your coverage will depend on the value of your belongings, but
renters insurance might be as low as $125 per year. It's important to know the limits of what is covered. Although incidents such as
fire, vandalism, smoke, theft, freezing and other hazards may be covered, there may be exclusions.
Many factors can increase your premiums, such as
replacement cost coverage versus actual cost. An actual cost policy will give you the amount an item is worth, while replacement cost pays out how much it will set you back to buy a new one.
Since most things of value, like electronics, depreciate quickly, you might want to choose to pay more to cover the risk of loss.
Equipment used for personal and professional purposes might fall into a grey area, but you can find an affordable policy that will even cover home business expenses.
If you don't have renters insurance, talk to your insurance agent today. Chances are there's a policy that offers you coverage and peace of mind.
