Renting an apartment, townhouse, or single-family home is a necessity for many families. Not having to take care of the costs of upkeep and landscaping can save money, but one place you do not want to scrimp is on your rental insurance. Many landlords or buildings require it, but even if it is not, if you are renting long-term, you should consider purchasing it. This will ensure that, in case of a worst-case scenario, you will be able to replace your belongings, furniture, and more.
Is Renters Insurance Required?
The only time that renter’s insurance is required is if your landlord or the management company requires it. It limits the risk of tenants suing them for personal property damage or liability if there is a fire or other disaster. The good news is that if your landlord requires it, the process of getting it is pretty simple and it is affordable, too.
Is Renters Insurance Worth It?
It is becoming more common for building management companies and landlords to require it, but if they don’t, is it worth it? This policy covers your personal property, liability, and loss of use if something happens suddenly to your residence and belongings. Imagine having to replace all of your belongings. It can be quite expensive, especially if you add in the cost of replacing electronics and computers.
What Does Rental Insurance Cover?
A rental insurance policy can cover many different things, including:
- Personal Property Damage – If your belongings are damaged or destroyed by an unexpected event, your insurer will cover the damage cost up to the limits of your policy.
- Personal Liability – This portion of your policy will protect you against legal liability if someone is injured in your home. This can include such things as medical bills and lost wages if it is a serious injury.
- Loss of Use – This portion of your policy will cover expenses if your rental property becomes uninhabitable.
How Much Renters Insurance Do I Need?
When choosing your policy, you need to ensure that you get enough coverage. You need to get enough personal property coverage to cover the cost of replacing your belongings, as well as at least $100,000 in personal liability coverage. Taking a personal inventory of your belongings and adding up the cost of replacements will give you a good idea of the coverage you need. If you have high-value electronics, computers, jewelry, or art, you will need more coverage than someone who doesn’t. These two policy features make up the most significant part of the financial liability and will drive the cost of the policy.
Don’t scrimp on your renter’s insurance. While you may think that the landlord or property management company insures your personal property, this is not the case. Their insurance only covers the building or unit you currently live in. A renter’s insurance policy can be very affordable, especially when you consider the coverage that you will get. Do your research and purchase a renter’s insurance policy today.