Renter’s Insurance Is More Important Than You Think

Renter’s Insurance Is More Important Than You Think

May 21, 2020
Twitter Logo Facebook Logo Pinterest Logo
Renter’s Insurance Is More Important Than You Think

Some of the links on this page may be from our sponsors. We provide you with helpful information and access to resources. Learn more about our mission and advertising.

Whatever may affect your living situation, having renters insurance can provide additional support and benefits during those difficult times.

If you are renting your current home or some other dwelling like a condo or an apartment, it’s a great idea to have an insurance policy to cover all of your belongings.

Even if your current landlord offers property insurance, that only covers the loss of the building itself, and usually has nothing to do with what’s inside (your stuff).

The price of your renter’s insurance will vary based on the coverage you want. As with any insurance policy there are deductibles and coverage amounts.

Your renter’s insurance may also give you the option between a policy that will reimburse you for the current cash value of the items that were lost, or reimburse you for the amount you originally paid for the items when you bought them.

Reasons you should consider having renter's insurance

Unless you’re living in a single room with nothing more than a mattress, having renter’s insurance is a pretty good idea. It doesn’t cost that much, and having it available is with the peace of mind alone knowing that your property will be safe.

It's Reasonably Priced

A renter’s insurance policy should run you about $108 to $252 a year, according to the national average in 2020. The exact monthly cost will, of course, depend on factors like the type and amount of coverage you need, where you live, and the amount of your deductible.

It Protects Your Personal Property

The point of renter’s insurance is to protect against any losses to your personal property. This can include your clothes, jewelry, computers, furniture, any electronics, and even your luggage. Even for those of us who don’t own a lot of things, having to replace any percentage of your items will be far more expensive than paying what will likely be a monthly insurance bill of around $20-$25 bucks.

Liability Coverage Is Important

If someone is injured on your property, there is a risk that they could attempt to sue you since the incident happened in your home. Liability coverage comes with any renter insurance policy. This will likely cover any court judgements and legal expenses. On average, liability coverage plans will typically provide at least $100,000 in liability coverage and up to $5,000 for medical payment coverage. When shopping for a plan you can ask to see other limits available and choose accordingly.

It May Not Be Optional

Some landlords may have their renters have renter’s insurance as a requirement for moving in. Just like your landlord is responsible for insurance on the actual grounds and house property itself, tenants are required for coverage of what is in the house.

Coverage Beyond Home

Another great aspect of renter’s insurance which many people don't realize is that it covers your belongings whether you are at home when the incident occurs, in your car, and even when you are traveling. Each policy has varying coverage, so be sure to read the details of what your policy covers.

Additional Living Expenses Are Included

If your home becomes uninhabitable due to something you (or your landlord's) insurance covers, your insurance may also provide additional living expenses as an added benefit until you can get back into your new home. These can include the costs associated with temporarily living somewhere else, such as food and rent.

Peace of Mind

Renter’s insurance can be one of the most important aspects to consider when renting a place to stay. It can provide a better level of protection against your home and personal belongings, just in case anything happens.