Why Do You Need Renters Insurance

Why Do You Need Renters Insurance Image via Pexels All of the nuts and bolts, fine print and red tape that comes with moving into a place of your own can be a chore to say the least, but while the excitement is looming, don’t forget to look ahead and think about emergencies such as fire, flood, smoke, theft, vandalism, lightning, and other nature disasters that could occur. A main part of thinking about such probable causes is obtaining the protection you need which can be found in renters insurance. So what is renters insurance and why do I need it? Here’s the short, simple version. Rental insurance is basically coverage of damages to personal possessions. It covers everything that you own such as furniture, clothes, electronic devices, books â€" you name it. It also provides liability protection if someone is injured in your place and wants to hold you responsible for the incident. For example, if your apartment burns down and your roommate suffers second-degree burns, then renters insurance (the liability coverage part) will protect you from liability, having to pay out of pocket for his injuries. Another example is if your dog bites the postman and he chooses to sue you for injuries, renters insurance will cover the medical costs and the court costs. Additionally, if your home is unusable for a certain time, most forms of renters insurance will provide funding for you to stay in a temporary place that is at least comparable, in some cases better, than your current apartment. Well, you might be saying my landlord has insurance on the apartment, why should I get it on my own? Isn’t that like double insurance? Yes and no. The insurance your landlord buys only covers the apartment building which is the just the physical building structure. It does not include any of your personal belongings. So if an apartment building were to burn down, the landlord’s insurance would kick in to restore the building only. Renters insurance kicks in to restore your personal possessions. Of course, this is not the fun part about having your own place, but it is a lot easier, a lot more fun, and a lot less stress and headaches if you pay for renters insurance on a monthly basis and then, if, on the slim chance, there is an emergency, you are prepared long before it happens. So, I’m sold on getting renters insurance, but what exactly will it cover? OH, MY STUFF: Of course, as mentioned above, renters insurance covers most of your personal belongings in the event of fire, theft, vandalism, and water damage (for example, in my own case, if your washing machine backs up and begins to overflow). However, most renters insurance companies do not cover damage from more severe events such as earthquakes, flooding, landslides and so forth. You may need to check for a separate policy or an add-on to your insurance policy if you live in a part of the country in which such weather is prone to happen (earthquakes on the west cost or hurricanes on the east coast for example). Additionally, most renters insurance companies have a limit as to how much coverage will be given on certain items. For example, $1,000 may be the coverage limit for fur coats and Gucci handbags; $2,000 for furniture; $3,000 for electronics. This means that if you have three fur coats and two Gucci handbags that total $3,500, then $2,500 is going to have to come out of your pocket, not from the insurance company. If your electronics total $7,000, then $4,000 worth of electronics will be up to you to kick out if you want those items back. Further, if you have expensive jewelry such as engagement or wedding rings, a personal article policy add-on may be helpful to you. It costs a few bucks more but if you have multiple items that are special to you, then it will be worth it. OH, MY LIVING: As mentioned earlier, if something were to happen to your apartment that made it completely unfit to live in, then renters insurance would cover any expenses incurred with moving to another place including certain bills at least for a reasonable time and in some cases, the cost of food and travel expenses. OH, MY LIABILITY: Negligence resulting in an accident to someone else physically or to property is covered by renters insurance (dog bites postman, for example). However, some other types of negligence are not covered by insurance. If you own a home business and someone doesn’t get their products in the timeframe promised and they want to sue, you need small business insurance to cover this. You get into a car accident and run over someone’s mailbox, you need auto insurance for this. You get injured at work and are unable to continue working for six months, you need disability insurance for this. There are many types of different insurance out there and it is important to know which one is right for you. So, I’m definitely getting renters insurance. What’s the cost? And where do I get it? On average, renters insurance policies cover anywhere from $25,000 to $55,000 for apartments and upwards of $100,00 for homes. The first question you want to ask yourself is how much does your stuff cost. Make an itemized list of every important thing in your apartment furniture, electronics, clothes, and any other personal items of worth. Second, take pictures or record video of everything so that if you don’t know the price, you can search for the item by photo or video and find the same or similar pricing. Take this list to your insurance agency and together you can determine how much coverage you need. Insurance prices as well as liability limits vary by state. You can start by communicating with the agent who insures your vehicle and check for a bundle package. This will keep all your insurance in one place and give you a much lower cost per month. When we moved to our new place, we got a bundle package for our property and vehicle for a reasonably lower cost than getting both separately. Almost all major insurance companies provide renters insurance. A basic policy should cost anywhere from $20 to $30 a month and that’s not a whole lot. Think of renters insurance like a plan B. You may never even get to use it, but the pennies for peace of mind is simply smart and worth it.