Yes. Yes, you should get renters insurance. This is an important aspect of the rental experience that often goes overlooked, but why? 95% of homeowners purchase an insurance policy, while only 37% of renters purchase a renters insurance policy. What could account for this difference? Many assume their landlord’s policy covers them. It doesn’t. Many think it’s expensive. It isn’t. Many think their belongings aren’t worth that much. They are – just add up your electronics to start, then your clothes. You’re probably already at a high number. Additionally, many people overlook the liability of not having insurance. If anyone gets injured in your home, you are responsible. Here we look deeper into why you should get renters insurance.
1. It’s Not Expensive
The amount you’ll pay depends on a number of factors: where you live, how much coverage you need and choose, and more. The average cost in the US is around $200, which comes to less than $1 per day. That’s crazy affordable when you think about all you’re getting!
2. It Covers Personal Property Loss
Your renters insurance policy will protect against (most) losses to your personal property. A recent study was done that found that the average renter owns about $20,000 worth of personal property. And you didn’t think your belongs were worth much! Your policy (a standard HO-4) will protect from most ‘perils’ including:
• Damage caused by aircraft
• Damage caused by vehicle
• Falling objects
• Fire or lightning
• Riot or civil commotion
• Vandalism or malicious mischief
• Volcanic eruption
• Weight of ice, snow or sleet
• Windstorm or hail
• Damage from water or steam from sources including household appliances, plumbing, heating, AC or fire-protective sprinkler systems
Please note that floods and earthquakes are not covered in any standard policy, and these and all listed above are not covered under your landlord’s policy.
3. It Provides Liability Coverage
So what if someone gets hurts in your rental? Not your fault, right? Wrong. If it’s your rental, it’s your problem. Anyone from your best friend to the pizza guy could sue you if they as much as slip and fall and hurt themselves. Having renters insurance protects you from this with liability coverage. It also protects you if you or someone else in your home accidentally injure another person.
4. Bonuses and Extras
With a name like renters insurance you make think it covers solely what you’re renting but that is far from the truth. Besides what we’ve already covered, there are some great additional benefits to gain from getting renters insurance. Renters insurance protects your belongings whether they are in your home, car or on the road with you while you’re traveling. No matter where you go in the world, your items are protected from all covered losses. Additionally, if one of the above ‘perils’ happens to your rental and your home becomes uninhabitable, your insurance could cover ‘additional living expenses,’ meaning the costs associated with living somewhere else temporarily, including food and more.
In summary, we highly recommend that you get renters insurance if you do not already have it. Do not be one of the 6 in 10 current renters that have overlooked all of its incredible features. Do not suffer from a lack of knowledge on what it covers or how much it costs any longer. Do not put your valuable items (remember $20,000!) at potential risk.
Do you have renters insurance? Do you plan to get it?