Most homeowners in this country have insurance on their house, and for good reason. Having a policy in place is essential to protect your home and belongings in case of an unforeseen emergency. However, there are many renters in this country who do not have renters insurance. This discrepancy is most likely due to a lot of misinformation around renters insurance, including people thinking it’s not necessary, doesn’t cover anything important, or is too expensive. In reality, though, it’s very different from what you might think! Here’s what you need to know about renters insurance, and why you should have a renters insurance policy this year.
Am I Covered by My Landlord’s Insurance?
Many people who rent a home or apartment assume that renters insurance is redundant and unnecessary because their landlord has insured the property, and consequently they must be covered under that policy. This isn’t true!
While your landlord will have a form of insurance for the property that you rent, this insurance only covers the physical building, not you or your belongings. If your apartment is water damaged, for example, your landlord’s insurance will cover the damage to the ceiling, walls, floors, and other parts of your apartment, but not your ruined furniture, clothes, or electronics. Renters insurance is designed to protect you, while your landlord’s insurance protects them and their property.
How Expensive is Renter’s Insurance?
The cost of living is high these days, and renters insurance might seem like a great place to cut back on expenses and save yourself a bit of money. However, you might not be saving as much as you think. Renters insurance is actually very inexpensive on average– you probably spend more per year on your different streaming services than you would on premiums. It’s a relatively low cost that offers protection and security in case of an emergency, making it something that’s very much worth investing in.
What Does Renter’s Insurance Cover?
Your landlord’s insurance covers the physical building that you rent, but nothing else. Renters insurance covers you, and there are three main areas it uses to do this!
Damage or Loss of Personal Property
If something like a fire, a leak, or a natural disaster affects your home, you could lose your clothes, jewelry, electronics, furniture, and many other personal belongings. If your apartment or house were to be broken into, you could also lose these items. Renters insurance covers the loss or damage of these things, helping protect you from the serious costs that would quickly build up if you tried to replace them all yourself.
Personal Liability Coverage
If someone were to get hurt in your apartment, like someone were to fall and injure themselves or if someone was bitten by your pet, there could be legal and medical expenses that you have to pay as a result of that accident. Renters insurance can help to mitigate these expenses with personal liability coverage.
Additional Living Expenses
While you hope it never happens to you, something might happen to your rental that forces you to need to live elsewhere for a short period of time, like damage that needs to be repaired. Renters insurance can help to cover the expenses you incur from having to live in a different place, like the cost of a hotel or food.
Should I Get Renters Insurance?
At the end of the day, renters insurance is usually a relatively small expense, but the things it can protect you from could always happen to you, and if they ever do, your insurance will pay dividends! If you’re interested in learning more or in potentially getting a renters insurance policy for yourself, contact YMI and one of our team members will help you!