The exaggerated prices of real estate have normalized renting and given home-seekers access to properties that they couldn’t have afforded otherwise. However, many renters make the mistake of neglecting to have a thorough understanding of their legal rights and responsibilities.
Just because you do not own the place where you live, does not mean that you do not have any obligation toward it. If you are someone who would insure the house you own, then it is time to consider insuring your rented residence.
People usually think of renter insurance as an optional add-on, but when you learn more about its importance, you will likely challenge this idea and actively seek one yourself. Here are 7 reasons why every renter should insure their property:
1- To Protect Your Belongings
Unlike insurance for homeowners that covers properties, as a renter, you want to protect your valuable possessions that are in the house you are renting. Basic renter insurance policies will cover you against damages from incidents like fires, explosions, and theft, just to name a few. What is even more interesting is that an article mentions that your possessions are under renter’s insurance coverage regardless of their location.
This means that if you forget your insured mobile phone at a restaurant miles away from your home, you can still file for a renter’s insurance claim and be compensated for your loss.
2- To Cover Temporary Relocation
If you were forced to move out of your rented home for a couple of weeks due to an infestation problem, you could use your renter insurance to cover your accommodation expenses. Your landlord will not offer you any assistance, regardless of the reason for the infestation. If you have a family and small kids, this can be enough reason for you to consider getting renter insurance.
It is annoying enough that you do not own your home, the last thing you would want is for your kids’ lives to be disrupted. Having renter insurance will save you a lot of money, and you will feel safe knowing that if or when you need to move out temporarily, you will be able to manage comfortably.
3- For Liability Protection
Unsuspecting renters are ignorant of the fact that they are the ones who will be held liable for accidents happening on the property and not the landlord. However, a renter insurance policy will protect you from assuming any liability in such cases. If your dog bites one of your neighbors, or someone trips over your plant pot out in the hallway, renter insurance will cover any medical bills and/or legal fees related to these kinds of incidents.
4- To Protect your Rental Against Natural Disasters
Basic renter insurance policies do not usually cover damages from natural disasters like earthquakes and floods. However, for extra money, you can find other premium policies that will cover them; if you live in a city where earthquakes are common, it is cost-efficient to invest in a premium renter insurance policy.
5- To Cover your Spouse’s Valuables
You can extend your renter insurance policy to cover your wife or husband’s belongings. This means that you will not have to worry about jewelry and other valuables every time you step out of your house, especially if you are still unfamiliar with the neighborhood.
However, it is worth mentioning that some insurance companies will charge you more for spousal coverage, so make sure you find a policy that offers it for free or at least one that you can comfortably afford.
6- To Save Money
Relying on renter’s insurance to cover any damages that you might incur as a renter is a smart way to save your money as you won’t need to pay out of pocket. Even if you don’t see it now, it might help to consider worst-case scenarios and act accordingly. It is much better to pay a monthly fee for insurance than to risk losing your life savings to fix fire damages in a home that you do not even own.
7- To Close the Gap in your Landlord’s Property Insurance
Landlords rarely require renter’s insurance before they conclude a rental contract because, to them, their property is covered with a property insurance policy. However, as a renter, you do not directly benefit from property insurance as it does not cover your personal belongings. Having a trusted renter insurance policy will level the field between you and your landlord, and you will feel like you too have possessions worthy of protection even if you are merely renting.
As you have read, renter insurance is extremely important if you want to be a smart renter. Yes, it will add to your monthly expenses, but you will realize that it is entirely worth it when it comes to your rescue if and when you need it. There are many renter insurance policies with different conditions, so make sure you do proper research to find the one that best caters to your needs.