How Renters Insurance provides security for tenants.
Updated: Mar 4, 2021
Renters' insurance, often called tenants' insurance, is an insurance policy that provides some of the benefits of homeowners' insurance, but does not include coverage for the dwelling, or structure, with the exception of small alterations that a tenant makes to the structure.
It provides liability insurance and the tenant's personal property is covered against named perils such as fire, theft, and vandalism. It also pays expenses when the dwelling becomes uninhabitable.
What Does Renters Insurance Cover?
Due to renters' insurance existing mainly to protect against losses to the tenant's personal property and provide them with liability coverage but not to insure the actual dwelling, it is significantly less expensive than a homeowners' policy. The owner of the building is responsible for insuring the dwelling itself but bears no responsibility for the tenant's belongings.
Your Belongings
Renters insurance serves as a protection plan for the items you own. From your new laptop to your gaming console to the couches in your living room, renters insurance is there to help protect you from loss.
Your belongings will be covered against theft, destruction, and loss. This means if a fire occurs, a tornado blows through, a flood drowns your belongings or any other type of destructive disaster, your stuff will be covered by your insurance plan. You can even opt for renters insurance that will help cover hotel costs if you need to relocate while your rental property is put back in order.
In our modern world of electronic devices, it is common that renters don’t even realize how much it would cost to replace all their electronics alone. Sit down and calculate what it would cost you if you lost all your electronic devices. If it’s an amount above a few hundred dollars, you want to protect those belongings with a quality insurance plan.
Not only are your belongings covered while they are in the rental property, your renters insurance will follow your belongings wherever they go. That means if your laptop were stolen out of your car, it will still be covered by your renters insurance.
Lawsuits
Hopefully you never find yourself on the wrong side of a lawsuit, however, life is not always predictable. If you cause harm to another person or their belongings, you can be held liable. If you have a kid or a pet that might harm another person or their items, your renters insurance can help cover a lawsuit as well. This insurance can become invaluable during a stressful and expensive lawsuit.
Medical Costs
Did you know you can be liable for injuries that occur in your rental home or apartment? Protect yourself from medical costs associated with accidents or injuries with renters insurance. Your policy can protect you from paying out on medical bills.
How Much Does It Cost?
While you may not have considered renters insurance in the past, fearing it was too far out of your price range, you’ll be pleasantly surprised to find that plans start as low as $15/month. You can choose the right insurance to fit your particular needs.
How Can I Sign Up For Renters Insurance?
You will want to start by making a list of your belongings and their value. Don’t leave anything off the list, particularly high dollar items like video game consoles, TVs, laptops, and furniture. You might be surprised as you do this exercise to find out how much your belongings are actually worth when combined as a whole.