You have car insurance, but you wonder why you should have renter insurance. Learn the facts about renter's insurance before it's too late.
Renter insurance is a form of insurance that covers your apartment and your belongings against damage or losses not covered by your landlord’s insurance. This includes most things that would cause your property to be lost or stolen, such as theft. You may not have thought much about renter insurance in the past, however renter insurance is important.
Your Landlord’s Policy Doesn’t Cover You
Your landlord almost certainly has insurance in the form of liability and property insurance. However, this insurance only covers your landlord’s property. This means that if a hurricane destroys your building your landlord is covered for the damage to the building. You, however, are not covered for damage to your property caused by the building. Nor is it likely that your landlord has any such coverage.
Renter’s insurance is generally very inexpensive. It certainly is less expensive than having to replace all of your belongings. You may not consider it very likely that there will be a fire or that your apartment will be broken into. However, the little money that you pay every month for renter’s insurance will likely put your mind at ease. You might find that companies you already purchase insurance from offer renter’s insurance. The company could offer you a discounted rate for bundling several different kinds of insurance together.
Your renter insurance will cover you for a number of common problems and many that you’d never even considered. Some common coverage areas for renter insurance include:
- Break ins and theft
- Riots and civil disturbances
- Water damage and flooding
- Fire and smoke damage
- Snow, sleet and ice
- Lightning, hail and windstorms
The specific areas of coverage will vary from one policy to another. Talk to your insurance representative about what the policies his company offers provide coverage for. You may also have to purchase additional riders for things like earthquakes if you live in an area that is prone to disasters.
Types of Insurance
When purchasing your renter’s insurance, it is important to know what types of insurance you can purchase. One main division between types of renter insurance is the difference between actual cost and replacement cost policies. The former refers to the original cost of your belongings, depreciated based on normal wear and tear. The latter reimburses you for the cost of replacing the items that you have lost.
Other variations on renter insurance includes:
- Personal property insurance only covers your property.
- Personal liability coverage covers you for accidents and injuries that occur in your apartment.
- Improvements coverage offers coverage to protect you from liability in the event that the actual property is damaged.
- Fire legal liability coverage protects you if there is a fire in your building and the landlord attempts to find you liable.
You will have to determine which type of insurance is best for you. It is recommended that, at the very least, you have personal property and liability coverage. This will protect you against most losses that occur on your property.
Getting Renter’s Insurance
Because the cost of renter insurance is so low, you should certainly consider getting it if you can afford it. This will protect you from just about anything that can possibly go wrong in your rental property. It is, of course, far better to have renter’s insurance and not need it than to need it and not have it.