What is Renter’s Insurance and How Does It Work?
Most people know that homeowners insurance is one of the most important things to have when you own a house. This is because it covers many things like vandalism, natural disasters, and even burglary. But what about those people who are renting or leasing their living places? Enter renter’s insurance.
Renter’s insurance is essential if you don’t own a house and are just living in an apartment or a room in a boarding house. If you’re considering getting one but aren’t sure how it works and covers it, then you’re in luck because this article will discuss what renter’s insurance is and how it works.
What is Renter’s Insurance?
Renter’s insurance is a form of property insurance that protects the policyholder from damages, losses, and liability claims involving their private spaces. While it mostly works like regular homeowners insurance, renter’s insurance is aimed specifically at people renting or leasing their living spaces. Renter’s insurance covers most properties like mobile homes, apartments, and rented homes.
So is renters insurance required? If you don’t have renter’s insurance yet, there’s no better time than now to get one for protection. Even if you aren’t even one year in your rented home, you shouldn’t put off something this important. It’s one of the easiest and cheapest insurance out there. Not to mention that it can also be a form of investment for the future.
You might think, “Oh, I’m very careful with my place. I don’t need one right now.” That may be the case, but there’s no saying what will happen. From natural disasters to even your neighbors, it’s important to be financially prepared before something happens to your home.
Sure, while your landlord’s property insurance may cover the entire building, it doesn’t involve the contents of your apartment. That said, there is a lot of coverage you can go for if you want to consider getting renter’s insurance. Here are some of them.
Accidents happen at any time and any place, even at your home. While it may be okay if you hurt yourself in the confines of your home, what will happen if your visitors hurt themselves?
Liability coverage protects from the financial liabilities of a person being hurt in your home other than those in it. It can even pay pet visitors if they hurt themselves inside your home. Not only that, but it could also pay for legal expenses. The liability coverage can usually cover from $100,000 to $300,000, depending on your policy.
This coverage is more aimed at the contents of your space. As mentioned before, you can’t rely much on your landlord’s property insurance since even though it covers the whole building itself, the contents within the apartments aren’t included.
That said, it would be better to insure the contents of your home yourself with personal possessions coverage. The coverage mentions specific perils, including vandalism, theft, fire, weather damage, natural disasters, etc.
Additional Living Expenses
This coverage pays for the situation that your house becomes uninhabitable due to the perils mentioned above. With this coverage, you’ll be given money to rent a temporary living space like a hotel room or an Airbnb. Depending on your policy, you’ll also be provided with restaurant meals, hotel bills, and car rentals.
Will Your Renter’s Insurance Also Cover Pets?
It usually depends on the policy that you’re holding, but commonly, the damages or injuries that your pet caused to others are covered. However, renter’s insurance doesn’t generally cover the damages your pets caused to your or your rented living space.
But What About Termites And Other Pests?
The short answer is no. Renter’s insurance doesn’t usually cover pests like ants, termites, cockroaches, and rats. But if it becomes a problem, you can report it to your landlord since it’s their responsibility.
What About Roommates?
If you have roommates, renter’s insurance usually won’t cover your roommate (additional living expenses, liability, and personal possessions) unless you’ve included them in your policy.
How Much Insurance Do I Need?
Think of everything you own and see if you can pay for them yourself. You might want to consider getting insurance covering all of them if you can’t. Usually, when getting renter’s insurance, you want to set coverage limits that are suitable for your situation. Creating an inventory of everything you own will give you a good insight into how much you own and the coverage you might need to cover all of them.
Renter’s insurance is a renter’s best friend. Although it is another bill you must pay monthly, it’s still essential, especially if you live in a bad neighborhood or a natural disaster-prone place, not to mention that even if you’re not in these types of places, unfortunate accidents can still happen in your homes. Don’t wait for something bad to happen; get a renter’s insurance now.