It’s becoming more and more common for landlords to require tenants to have renters insurance. This little requirement saves time, money and headache for all involved.
Whether it’s a requirement of your rental agreement or not, there’s no question that anyone who is renting their home, should invest in a rental insurance policy.
What is renter’s insurance?
Before getting into WHO needs renters insurance, let’s be sure we’re all on the same page when it comes to what renters insurance is.
Renters insurance is an insurance policy that covers your personal items if they are damaged in your rented space of dwelling. Policies vary from company to company, however, you’re usually covered in the event of a fire, theft and if there’s damage to your electronics, furniture, clothes, anything really, that’s in your rented space.
Renters insurance also comes in handy for unexpected accidents that might happen and potentially cause damage to your neighbor’s property.
Think about this way…
You’ve just returned home from a stressful day at work. You run a relaxing bath. While you’re waiting for the bathtub to fill, you lay across your bed and doze off to sleep.
Two hours later…your bathtub has overflowed and is now causing a leak in your downstairs neighbors ceiling. You could be held liable for these type of damages but if you’ve got renters insurance, you are covered and can breathe a little easier.
The homeowner or landlord will have their own home insurance that protects the structure you are renting and a few other things but they are not responsible for what’s inside your rented space.
That responsibility falls on you.
Who Needs Renters Insurance?
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Parents
If you’re a parent who’s renting, renters insurance is a must.
With children, there is always the possibility of an accident especially when other children are playing in your home or yard. Renters insurance will protect you in the event a playdate or birthday party go awry and a guest is injured while in your home.
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Pet Owners
As much as we adore our furry friends, “the unfortunate reality is that you can be held liable for your pet’s behavior – even if you take all the precautions to prevent your pet from inflicting any kind of damage.”
That means you could be on the hook if your pet bites or injures someone in your home or maybe walking by. You could also lose your security deposit or be liable for damage your pet does to your home.
Renters insurance can protect you from an extra financial burden. Be sure to ask your insurance agent about a policy that covers your pet.
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Roommates
While you may be sharing a living space with a roommate, I doubt you want to share expenses that may pop up unexpectedly, like replacing appliances that conk out or electronics after a power surge.
Renter’s insurance can cover those type of costs (and so much more!).
If you know and trust your roommate, you can even ask your insurance agent about splitting the cost of a renters insurance policy.
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Senior Citizens
Senior citizens are typically most concerned with health insurance, not realizing that, if they’re renting, the liability protection offered under most renters insurance policies are just as important.
As we age, we become a little forgetful and sometimes clumsy.
“…Look at it this way: 33% of all seniors 65 and over fall each year.”
Renters insurance can help protect seniors in the event there’s a mishap at home. Perhaps a forgotten dish on the stovetop catches fire and causes damage to the neighbors dwelling. Renters insurance would come in handy to absorb the cost of repairs that you may now be responsible for.
Seniors living in assisted-living communities could also benefit from renters insurance if they ’ve brought many belongings with them to their new community. In case of damage or theft, the belongings could be replaced.
Seniors with high-value items should be sure to ask their insurance agent about coverage limits and choose a policy that fits your needs.
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First Time Renters
If this is your first time renting, you’ll want to start this new chapter of your life on the right (and smart!) foot by getting a renters insurance policy as soon as you sign your rental agreement.
A mistake first-time renters usually make is skipping the renters insurance.
US News & World Report says, “Your landlord likely has an insurance policy that covers structural damage to the house or apartment you’re living in, but that policy probably doesn’t cover your possessions…”
Renters insurance is more affordable than most people believe and usually doesn’t cost more than $25/month. If you have an auto insurance policy, you can often contact your insurance agent and snag a few additional discounts by adding renters insurance.
The small cost associated with renters insurance is well worth the peace of mind you’ll have knowing you are covered in more ways than one.
- Personal Property Coverage: If you’ve got simple everyday items like clothing, furniture, and appliances, you’ll need renters insurance. Think about it this way…If a fire was to start, your landlord’s insurance will fix the building but who will replace all of the belongings you could lose?
- Liability Coverage: This part of a renters insurance policy is for anyone who has visitors that like to stop by. It provides protection when you are legally liable for bodily injury or property damage that occurred as a result of an accident or incident involving you or another member of your household.
- Medical Payments to Others: You’ve got health insurance to cover you if you get hurt at home. What happens when a guest is injured in your home and you are held responsible for their medical costs? Renters insurance to the rescue to save you from that financial burden.
- Additional Living Expenses/Loss of Use: This one you will want to be sure to discuss with your insurance agent when you create your unique policy. This little addition to a renters insurance policy would cover you in the event your home is so badly damaged that you’re displaced. It would cover expenses such as a hotel or the cost of eating out.
Now that you see the importance of renters insurance, it’s time to get covered.
Our goal at Linc Financial Group is to help make the process of purchasing renters insurance as simple as possible while offering individualized attention to you and your needs. We can help you create a policy that’s perfect for you!
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