Why Every Renter Needs A Renters Insurance Policy
Renters insurance is a policy that protects you and your belongings if something bad happens. It covers your personal belongings and your liability exposure. Many people that rent their homes don’t buy a renters insurance policy because they mistakenly think these cost more than they actually do.
Whether you’re living in a rented house, apartment, or condo, you can buy a renters insurance policy. Landlords sometimes require one. The landlord’s policy does not cover your belongings when you rent or your liability. If you don’t have a renters policy and the house burns down, for instance, you’re out whatever belongings you have inside.
The first decision is to decide how much coverage you need for your belongings. to be fully insured. Ordinarily, you’re going to want to have a replacement cost policy. This covers your personal contents based on how much it costs to replace, not its depreciated value. It’s a good idea to go through your home and add up how much it would cost to replace everything. That will be the amount of coverage you want. It’s also a good idea to document what you can, such as serial numbers and saved receipts.
Renters insurance policies cover many types of common perils. These include fire, theft vandalism, falling objects (like a tree coming down through the roof), explosions, and so on. There are some exclusions, such as your contents being damaged by a flood. It also doesn’t cover if you intentionally damage your things.
Renters insurance covers liability exposure, usually starting at $100,000. This protects you if someone gets hurt in your home or your dog bites someone. However, be aware that insurance companies charge more for some breeds of dogs or even exclude them entirely. Another type of thing liability covers is leaving the bathtub running and flooding out the neighbor below you.
Renters insurance is often relatively inexpensive. Given how well it protects people, there’s little reason not to have one of these policies. It’s the peace of mind that if something bad were to occur you’re only going to be out your deductible and not have lost nearly everything you own.