5 Reasons You Should Have Renter’s Insurance

  • Fill in the Gap of Auto and Travel Insurance
  • Replace Personal Property
  • Low Cost for Peace of Mind
  • Protection from Liability Lawsuits
  • Coverage for Additional Living Expenses

Renter’s insurance offers coverage for a wide range of losses, including damage to personal items and furniture as a result of fire, a burst pipe or theft from an apartment or other type of rented housing unit. For many people, renting is the only affordable solution for their housing needs. Consider these five reasons to purchase a renter’s insurance policy.

Fill in the Gap of Auto and Travel Insurance

If a person’s car is burglarized, auto insurance typically does not pay for the losses. This is where a renter’s insurance policy comes in handy. Whether the vehicle is parked in the apartment unit’s dedicated spot, on the street, at the person’s workplace or in a shopping center, the renter’s insurance could cover losses such as theft of a laptop or other personal belongings. It may also provide coverage for lost or stolen luggage and personal effects while traveling within or outside of the United States. Most travel insurance policies do not provide that coverage.

Replace Personal Property

If an apartment building catches fire, personal property may be damaged or destroyed. Smoke and water damage could necessitate the replacement of a person’s furniture, linens, clothing and electronics. This would be expensive on an out-of-pocket basis. A renter’s insurance policy would pay for the replacement of personal belongings, furniture and electronics up to a certain dollar amount. It covers accidental fire, burglary, water damage, storm damage and more.

Low Cost for Peace of Mind

Another good reason to get a renter’s insurance policy is its affordable price. $100,000 of coverage for personal items, housing assistance and liability costs around $10 to $15 per month for up to two people on a policy. Additional coverage can be added for a few more dollars per month. Riders can be purchased if the apartment is located in a flood zone or a place that is prone to hurricanes. For $10 to $20 per month, a person can get a lot of peace of mind.

Protection from Liability Lawsuits

According to Investopedia, a renter’s insurance policy also protects the policy holder from liability in the event that someone is injured in their apartment. For example, if the renter invites a friend over for dinner, and the friend is splashed with hot oil from a deep fryer, the friend may incur medical bills. The renter’s insurance policy would provide liability coverage for the friend’s medical expenses and protection against liability up to a standard amount in the case of a lawsuit. This would protect the renter from having to declare bankruptcy if a court found in favor of the plaintiff.

Coverage for Additional Living Expenses

In a multi-unit building, a fire could damage one unit but render the structure uninhabitable until repairs are made. In some cases, an entire building could be destroyed. The renter would have little time to find a new place. Meanwhile, all of their belongings would also be destroyed. Most renter’s insurance policies offer some coverage for additional living expenses. For example, the policy might cover up to 10 days in a hotel for up to $100 per night. This gives the renter time to get their security deposit back and find a new place.

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For about $15 per month, a renter can have a lot of peace of mind. The coverage provided by renter’s insurance also extends to the policy holder’s personal items in their vehicle and their belongings when they travel, providing a lot of additional value and protection. Having a renter’s insurance policy is a good move for financial stability at all stages of life.