If you rent an apartment or condo, renter insurance is an important tool that can give you safety and peace of mind. You may be asking, “do I need renters insurance?” your landlord should have their own property insurance. Before you give up on buying renters insurance, read on to learn more about how this important form of insurance can keep your valuables safe.
Basics of renters insurance
Your landlord is the property owner and you are the tenant, but that doesn’t mean their insurance will cover everything that’s important to you. If your belongings are stolen, damaged, or even vandalized, homeowner’s insurance won’t pay the bill to replace them.
When you think about the question “do I need renters insurance?” Remember that it is designed to protect you from many unexpected and unpredictable disasters. Whether it’s a fire in your apartment or a break-in, without insurance, you’ll have to pay for everything out of your own pocket.
Your homeowner’s property insurance covers the structure of the building itself. It does not include your personal items such as electronics, clothing, jewelry or other important valuables.
Even if your roommate has a tenant’s insurance policy, you’ll still need to purchase your own. There are several insurance companies that will offer a single policy for multiple roommates. However, it’s best to have a separate policy for yourself.
Protect your personal property
You work hard for what you have. Don’t lose them due to natural disaster or emergency. With renters insurance, your policy will cover everything you keep in your apartment.
Look for a policy that has a reasonable deductible, but that also gives you a suitable coverage limit. This limit means that your insurance company will reimburse you a specific amount up to the total listed on your policy. For example, if your personal property insurance limit is $25,000 and you lose $20,000 worth of things, you’re covered.
Record everything you own by taking a photo, recording the serial number, or recording a video. If something happens later on, it will be much easier for you to show your insurance agent what was lost when you have proof in hand.
Why do I need renter liability insurance?
The word liability is scary. What if someone sues you because they were injured while hanging out in your apartment? Renters insurance offers you some protection against liability claims.
Suppose your friend was bitten by a dog at your apartment. Maybe a worker from your property management needs some repairs and they slip and fall to the kitchen floor. Renters insurance protects you from unexpected lawsuits.
The term “liability insurance” means that your insurance will help pay a person’s medical bills if they need treatment as a result of something happening in your apartment. Without this insurance, you may have trouble settling a lawsuit or be responsible for their medical expenses.
Liability also covers accidents that occur at home. If you break something or damage something in your neighbor, your policy will cover some or all of that as well.
What else does this insurance cover?
Renters insurance doesn’t just cover theft if your belongings are stolen from your apartment. If your car is broken into or someone steals your stuff while on vacation, your policy will help you recover. It’s a great way to have more peace of mind no matter where you go.
If your apartment building catches on fire and you are temporarily displaced, renters insurance will also cover the cost of putting you in the hotel. This insurance will also help you pay for food and possibly even cover the cost of clothing.
Ask your insurance representative for more information about coverage for temporary housing and other living expenses. Your policy should clearly list it line by line. You can ask to increase your limit if needed, but keep in mind that this could increase your premiums or deductibles.
You might be surprised to learn that renters insurance will even cover things like spoiled food. If your refrigerator breaks down, your plan can reimburse you for food lost due to faulty or damaged appliances.
Insurance for renters and water damage
Whether it’s a natural disaster, flood or leaky plumbing, water damage is one of the most common causes of insurance claims. If you live in a flood-prone area, your renter insurance won’t cover the resulting damage.
, separate flood insurance is required. Ask your landlord if they have flood insurance if that is a cause for concern.
Broken pipes or plumbing problems can wreak havoc on your property and belongings. This type of water damage can be covered by your homeowner’s insurance if the problem is not your fault. However, only renters insurance will cover damage to your belongings while a landlord’s policy will cover the structure itself.
Let’s say you accidentally caused a flood in your apartment and the water damaged the electrical outlets. In this case, your renter’s insurance will cover the damage and pay for the repairs.
How much insurance do I need?
You may be wondering how much coverage you should claim when you get a renter’s insurance policy. The answer really depends on what you own and how valuable it is.
Take a detailed inventory of your belongings and write down the serial numbers so you have everything on file. Notes about your belongings include clothes, computers, and even home decor. If you happen to have rare antiques or collectibles, you may need a separate policy or line item that covers these particularly valuable items.
Once you have a basic idea of the total value of the things you own, you can use this number to get your personal property insurance limit. Make sure you account for everything, including furniture and clothing, so you know you’re covered.
The average personal property coverage amount for renters insurance is about $30,000. Personal liability insurance usually has a limit of $100,000. Do your research to find an insurance provider that will give you the coverage you need at a reasonable price.
When you choose your coverage limit, don’t forget to look at the deductible. This is the amount you will have to pay yourself if you file a claim. Most deductibles on a renter’s insurance policy are between $500 and $1,000.
Peace of mind with Renters Insurance
When asked “do I need renter insurance,” the answer is simple – Yes! This coverage will protect your stuff and keep you safe from potential liability.
Talk to your insurance agent or shop around to get the best price. Once your policy is issued, you’ll not only be covered, but have peace of mind.
