It’s not surprising that 93 percent of homeowners have homeowners insurance. But it is surprising that only 41 percent of renters have renters insurance.
If you just asked, “what is renter’s insurance?” then you’re probably in the 59 percent without it. Maybe this is the first time you’ve ever heard of it. Or maybe you’ve heard of it but don’t think you need it.
In either case, renters need insurance too. They’re just as susceptible to tragedies, and their possessions are just as valuable.
Let’s take a closer look at the question “what is renter’s insurance?” and why people in apartments or rented houses need it.
What is Renter’s Insurance?
It’s essentially what it sounds like. It’s a way for people who are renting their living space to insure their personal belongings. Some landlords will even require you to get renter’s insurance to rent their property. They’re smart enough to know that it protects both of you.
Renter’s insurance is also fairly inexpensive and can be easily purchased at a number of providers. You may even be able to get it through your current insurance agency.
What Does Renter’s Insurance Cover?
If your basement apartment floods from high rain, is your couch and stereo covered? Let’s take a closer look at what it covers.
Personal Property Coverage
This type of insurance will cover you in case of a burglary or fire, or other types of incident. It protects the personal property that you list on the policy. It can also be used to cover things like televisions, stereos, appliances, clothes, jewelry, even the ping-pong table.
If this is your first one bedroom apartment, you may not think you have enough nice stuff to warrant this type of coverage. Your TV is a hand-me-down, and you still have a PlayStation 3. But when you add up all the little things like kitchen utensils, towels, drapes, and bedding, things become very expensive to replace, should the worst happen.
Ask yourself if you can afford to replace everything in your apartment, out-of-pocket, right now. If the answer is no, you need personal property coverage.
You may not have thought of this, but what happens if somebody slips on your rug and breaks their leg? Liability coverage protects you and can cover legal costs, medical bills, and other related expenses.
It also protects you from any damage that any of your guests may cause. So if a friend is helping you move a couch, and they damage your neighbor’s light fixture trying to angle it properly, your coverage may be able to help you cover the repair costs.
Additional Living Expenses
This type of insurance can cover your expenses if your apartment is uninhabitable and you can’t stay in it for an extended period of time. If your roof is leaking, or you’ve lost power completely for a week, this type of insurance can cover the cost of staying in a hotel and eating out for the duration of your displacement.
Are You Looking For An Apartment?
We like to answer renter’s questions such as “what is renter’s insurance?” But we also offer comfortable and affordable apartments to rent.