One of the advantages of renting is that your landlord, not you, is responsible for insuring and repairing your place of residence. However, as a tenant, you're not fully off the hook if something happens to your belongings, which is where getting renters insurance becomes a good idea.
Renters' insurance typically covers loss or damage to your belongings in the residence due to fire, theft, vandalism, plumbing, and electrical issues. If you’re a renter, read on to understand why you should get renters’ insurance.
What Does Renters Insurance Typically Cover?
Additional living expenses, personal belongings, and liability are the three fundamental coverage components of renters insurance. In terms of the basic coverage, the types of coverage include:
- Personal Property: Clothing, furniture, gadgets, and other personal items are all covered.
- Liability: If you're at fault for other people's injuries or property damage, you'll be compensated.
- Loss Of Use: If you have to stay somewhere else while your home is being repaired, this coverage pays for hotel accommodations, restaurant meals, and other expenses.
- Medical Payments: Injuries to other persons in your house are covered regardless of who is at fault.
Why You Should Get Renters Insurance
Living alone or with roommates in a rented property can be a gamble, the best course of action is to always rent with calculated risk. Here are some benefits of getting renters insurance especially if you live in an urban area or in the big cities:
It’s Affordable
According to the National Association of Insurance Commissioners (NAIC), the typical renter's insurance policy cost $180 per year in 2017 (latest numbers) (NAIC). The quantity of coverage you need, the type of coverage you choose, the size of your deductible, and where you live will all influence your final cost.
It Covers Liability And Property Loss
A renter's insurance coverage protects your personal belongings, such as clothing, jewelry, baggage, computers, furniture, and electronics, from loss. Liability coverage protects you if someone is injured in your house or if you (or another covered person) injure someone by accident. Any judgments and legal costs are covered up to the policy's maximum.
It Lets You Travel With Peace Of Mind
Your personal items are covered by renter's insurance, whether they are at your home, car, or with you while traveling. Wherever you go, your possessions are protected against theft and other covered losses.
Frequently Asked Questions About Renters’ Insurance
Read through some frequently asked questions about rented properties and enters’ insurance:
What does renters insurance cover in the U.S.?
A renters insurance policy will cover damage to or theft of personal property, personal liability, emergency medical expenses for guests, and additional living expenses if you need to temporarily relocate.
How much does the average American pay in renters insurance?
According to a recent study, the average renters rate of insurance in the United States is $168 per year, or roughly $14 per month. According to the estimate, a 30-year-old tenant would have a policy covering $30k in personal property, $100,000 in liability, and a $500 deductible.
What is the difference between landlord insurance and renters’ insurance?
The coverage that protects the dwelling is known as landlord insurance. If there is a fire and the building is destroyed, the landlord's insurance pays to rebuild it. Renters’ insurance is similar but it does not cover the dwelling. After all, since the tenant does not own the building, they are not required to insure it.
The process of renting a home, whether it's a condo, apartment, duplex, or three-story house, can be daunting without the proper protections. Even if you do not plan to purchase any real estate anytime soon, you should buy renter's insurance to cover your bases.
At Stampede Insurance Services, we can assist you in protecting your valuables and your home. Once you decide the amount of coverage you need, we can tailor a package to fit your renters' insurance needs.
