Learn from our property management experts!
If you are planning to move out on your own for the first time or maybe you are renting a room, chances are you’re going to need to invest in renter’s insurance. Only a staggering 41% of renters actually have renter’s insurance. Some building managers require tenants to get renters insurance, but many don’t. Just because no one is requiring you to buy it doesn’t mean you should write it off.
Renter’s insurance will generally offer two or more types of coverage: personal property protection, liability protection, increased living expenses and guest medical protection. Personal property will protect your belongings in case there is a covered loss, and liability protection can help protect you financially if someone is injured in your home and they file a lawsuit. In the case of increased living expenses, this policy helps cover the cost of staying someplace else after a covered loss renders your home uninhabitable. Guest medical protection is a coverage option that can help pay for medical expenses for someone who was injured at your home.
We’ve gone over what renter’s insurance covers, but what doesn’t it cover? The answer could vary based on different circumstances, but we will stick to the basics. Typically, renter’s insurance will not cover damage done by flooding, hurricanes, earthquakes, tornados, sinkholes, pests, or terrorism. When taking inventory of your personal items, it is important to check with your policy to see if a higher-ticket item will be covered in the event of a loss. If not, you may want to raise your coverage limits. Another important note to keep in mind is that if you have roommates, they will not be covered by your policy unless they are directly added onto the policy.
In the end, you may think that your belongings aren’t worth much, but when it comes down to replacing the electronics, clothing, furniture, and even appliances, the price tag will grow very quickly. If you had a small house fire, this could still lead to thousands of dollars in repairs and replacement if it is needed. As we mentioned earlier, renter’s insurance is there to help protect you in case of the unexpected. You may believe disaster could never strike, but truly you cannot know.
As with most things, the insurance rate depends on a few factors and may be different based on those circumstances. These circumstances can be based on where you live, the type of policy you are looking to buy, and the value of the property you are insuring. In general, a basic renter’s insurance policy can cost between $10 and $20 a month, or $120 to $240 a year.