At some point in our lives, a majority of us have faced rents in some or another way. One of the more popular kinds of rents includes home rents where the tenants pay monthly, quarterly, half-yearly, or annually for owning a homeowner’s property, temporarily. Before we get into the hows & whys, let’s talk about the whats of rental insurances. What are these? How are they different from your landlord’s property covers & policies? And why should you pay heed to these?
If you are a tenant occupying land or property rented from a landlord, a renters insurance would take care of YOUR personal properties and other liabilities whereas your landlord’s insurance generally only covers losses to THEIR estate. ‘Assuming’ that you have the renters insurance covered by your landlord’s policy could be as financially fatal as going to a hospital without medical insurance. Another study or a survey by Investopedia that proves the risks of assuming that you have renters insurance is that only 41% of landlords have renters insurance, while 95% have a homeowners insurance policy. While stating ‘why’ you should buy it, we will focus on both the disadvantages and advantages of not having renters insurance. So, here are the top 5 reasons why you should get a renters insurance as soon as possible:
1. It covers your accidental losses
Even if your neighborhood has had a low personal property accident rate, blindly believing in the figures could be disastrous. Because even a 1% chance can convert into a full-fledged tragedy with the right conditions. So, a renters insurance covers the losses to your personal properties from hazards like:
Vandalism or robbery
Civil riots, etc.
Losses by these accidents might appear minute to a lot of people, but they can add up in a jiffy if left unattended and could include losses like: clothing, jewelry, luggage, hardware, furniture, and electronics. Varying to hundreds and thousands of dollars to replace the damages. Although, this insurance does not include tragedies caused by the renter’s oversight like leaving the gas stove on or overlooking a gas leak, etc. Some other disasters like floods and earthquakes might also not be included in the general policies and need separate coverage. For information on water damage insurances, check out G&G Independent Insurance. It’s always better to talk to your agent thoroughly about the types of coverages before enrolling in one!
2. It reduces liability
What most people don’t know is the fact that if a person like your visiting friend, a delivery individual, etc, can actually sue you if they get injured inside your house or if you injure someone by mistake. So, similar liability coverages are incorporated in most of the renter’s policies. The expenses covered under this part include:
Smaller medical expenses
Up to $100,000 to $150,000 could be covered under medical and legal expenses of liabilities. And even higher limits could be requested under certain circumstances.
3. It is inexpensive
Although the cost of your renters insurance depends widely on the factors like: the types and amounts of coverage you need, and where you live, a general one in the US costs about $200 according to the NAIC. If a mere 200 dollar fee could save your $100,000 to $150,000 of expenditures, it’s an obvious enough reason to take it as the so-called ‘ROI’ (return on investment) here is more than 500 times.
4. Covers travel coverages
One myth about renters insurance is that people think it only covers your personal properties while they are inside your home. But it covers them everywhere! Whether they are in your car, home, or in your hands. This is encompassed under the “other coverages” section and even includes robbery while you’re on a trip. Always a good idea to enquire about these additional coverages with your insurance agent.
5. Sometimes it’s mandatory
Many homeowners are now mandating it for the tenants to have renter’s insurance as they believe it lifts a lot of responsibility from them in the event of an accident or mishap. These landlords’ insurances only cover losses to their estate (structure and grounds). And, in case of overlap of coverage between the two policies, the landlords could benefit from the existence of your renter. So, a renters insurance could be a must-have requirement or an ‘order’ by your landlord, and they may seek proof of the same before you rent their place.
With this, we have covered almost every aspect of WHATs, HOWs, and WHYs of getting a renter’s insurance. So, here are a few points to remember while you’re on the verge of renting a property:
- Don’t assume that your landlord’s policies include the renter’s. They are for YOUR coverage and well-being, not your landlord’s.
- For a self-motivating factor to get this insurance, try roughly evaluating the value of your personal belongings like clothing, jewelry, electronics, furniture, etc. Imagine how much it would cost to replace it all. And now go get your renter’s.
Being a new tenant could feel overwhelming with so much legal documentation and insurance in place now. Many International students renting an apartment might find this confusing too. So, it’s always a good idea to do your research before jumping on to anything. And when you decide on getting a renter’s, make sure you read through all the terms and conditions of the clauses, the deductibles included, replacement cost coverages, limits, types, discounts, etc.