Do you rent an apartment or a home?
If the answer is yes then you’ll need an insurance policy to cover your belongings. Your landlord’s property insurance policy covers losses to the building itself – whether it’s an apartment, a house or a duplex. Your belongings aren’t covered by your landlords property insurance! You could also be liable for any injuries gusts or visitors to your home have.
Even if you thought you didn’t need insurance, here are six good reasons why you should get a renter’s insurance policy.
It’s affordable.
The average renter’s insurance policy costs $187 a year, according to 2011 figures reported by the National Association of Insurance Commissioners (NAIC) in 2013. Your actual cost will depend on factors, including how much coverage you need, the type of coverage you choose, the amount of your deductible and where you live.
It covers losses to personal property.
A renter’s insurance policy protects against losses to your personal property, including clothes, jewelry, luggage, computers, furniture, and electronics. Even if you don’t own much, it can quickly add up to a lot more than you realize.
Your landlord might require it.
Your landlord’s insurance covers the structure itself and the grounds, but not your belongings. A growing number of landlords require tenants to purchase their own renter’s insurance policies, and they’ll expect to see proof. This could be the landlord’s idea, or it could be an “order” from the landlord’s insurance company
It provides liability coverage.
Liability coverage is also included in standard renter’s insurance policies. This provides protection if someone is injured while in your home or if you (or another covered person) accidently injure someone. It pays any court judgments as well as legal expenses, up to the policy limit.
It covers your belongings when you travel.
Renter’s insurance covers your personal belongings, whether they are in your home, car,or with you while you travel. Your possessions are covered from loss due to theft and other covered losses anywhere you travel in the world. Check your policy or ask your insurance agent for details on what constitutes “other covered losses.”
It may cover additional living expenses.
If your home becomes uninhabitable due to one of the covered perils, your renter’s insurance policy may cover “additional living expenses,” including the cost associated with living somewhere else temporarily, food and more. Check with your policy to find out how long it will cover additional living expenses, and if it caps the amount the company will pay.
This article was adapted from: https://www.investopedia.com/articles/personal-finance/082714/6-good-reasons-get-renters-insurance.asp
