Renters insurance is just like home insurance, only it’s for renters. Whether you are a student or a self-employed individual who has rented an apartment, you need renters insurance for many good reasons. The top 5 of them are as follows:
- It Covers Losses to Personal Property
Your personal property and belongings can be lost or damaged in many ways. For instance, you can become a victim of fire, flood, lightning, heavy snow or sleet, etc. You can also be robbed, especially if you are living in one of the US states with the high burglary rates like New Mexico, Arkansas, and Mississippi.
According to the government records, the average loss in a robbery in 2016 was around $2,361. That’s a lot of money for someone who is living on a rentalbasis. So, it’s only smart to get renters insurance that can cover all kinds of damages.
- It Covers Personal Liability
Personal liability lawsuits are more popular than you think. People sue each other over the most trivial of matters and get away with claim settlement amounts ranging from $3,000 to as much as $75,000. However, if you think you won’t be sued, then think again.
Claim up to $26,000 per W2 Employee
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Here’s a plausible situation: you live in a rental apartment and decide to throw a party for your friends and acquaintances for getting a promotion at work. There are close to three dozen people in your apartment at the weekend, and one guest accidentally falls down the stairs due to a damaged step. You don’t even know this person that well, but they decide to sue you for the damage. Now, this kind of case can easily fetch them $10,000 or more depending on their wounds and their lawyer. However, if you have renter’s insurance, it can easily cover all the charges.
- Provision for Temporary Lodging
It’s important to learn what renters insurance does not cover which includes auto theft, undocumented items, etc. so that you handle different situations appropriately. However, most renters insurance policies will offer you compensation if you have to temporarily stay someplace else other than your rented apartment. There are many events that may enforce this arrangement such as pest infestation, fire, etc.
Believe it or not, staying in a hotel can be quite expensive as there is room rent, dining, laundry, transportation, etc. However, your insurance policy may reimburse most of these costs depending on the cover.
- You May Miss Out on Some of the Best Locations
There are many perks of renting vs owning like low costs and commitment-free accommodation which is why the market is still hotter than ever. However, you can’t make the most of this flexible option without renters insurance. This is because many landlords have started making it mandatory for their tenants to have renters insurance. This is just their way of managing property-related risks and avoiding responsibility as much as possible. So, if you want as many accommodation options as possible, then it’s best to get renters insurance before you start looking for a place to say
- It’s Dirt Cheap
How much do you think it costs to get $30,000 to $50,000 worth of renters insurance? $100 a month or $200 a month? The correct answer is mere $15 to $30 a month which is basically the amount of money you spend on just coffee in a week. So, why not spend another $20 to $30 to get the protection of tens of thousands of dollars? If youthink about it, it’s a small price for your own safety.
Bottom Line
If experts are to be believed, then renters insurance has become more important than ever. In fact, many even recommend that college students should get renters insurance policies as well in light of the increasing property damage incidents on college campuses. Otherwise, if you are a freelancer and use a room as an office, then having renters insurance can grant you tax benefits too. So, don’t waste time and get the best insurance in your area today itself if you don’t have it already. It’s for your own good.
