When it comes to insurance most renters aren’t covered. According to one survey, only 37% of renters have insurance as compared to 95% of homeowners having homeowner’s insurance. Many people mistakenly think they’re covered under their landlord’s insurance policy. While the building itself may be covered, liabilities and the personal property of the renter are not. If there is a fire the landlord will be able to rebuild, but you will lose everything. The same can be said if someone were to get injured in your home and decides to sue. With that in mind here are five reasons to have renter’s insurance.
- It protects your property. Most people severely underestimate how much their property is worth, but if you look around and start adding up the costs of electronics, furniture, and clothes, it quickly becomes obvious how difficult it would be to replace those items in the event of tragedy. Renters insurance can cover everything from theft to volcanoes.
- It protects you from lawsuits. Accidents happen and occasionally someone could get hurt while in your home. If that person decides they want to sue, liability insurance will cover legal expenses and court judgments as long as they don’t exceed the policy’s limit.
- You’re covered if you travel. One of the great things about renter’s insurance is that it covers your property no matter where it is. That means it’s covered from theft or other losses even if it’s in your car or if you’re on vacation.
- In a tragedy, living expenses are covered. If you your home is uninhabitable due to one of the covered tragedies, then your policy may pay for temporary housing and even food.
- It’s affordable. When most people start thinking about insurance, they start to worry about the cost. While the cost can depend on a lot of things including where you live, how much and what type of coverage you choose, the average cost for renter’s insurance in 2011 was $187 a year. When you think about the cost and inconvenience associated with losing your belongings or being displaced from your home, it seems a small price to pay.