There are many benefits of renting real estate as opposed to buying. However, without adequate protection, you as a renter could be subject to a plethora of fees, fines, and damages. For example, did you know that there are an average of 374,000 home fires each year? And while in 2013, 4.8% of homes had claims, the vast majority of these claims concerned theft and property damage. As a renter, you can be susceptible to these things without the protection of homeowner’s insurance.
Luckily, that’s where renters insurance comes in.
What is renters insurance?
Though less discussed than other insurance options, renters insurance helps to provide financial protection against the destruction or loss of personal items while renting a house or apartment. Regardless of whether or not your landlord is sympathetic to the plight that results from destruction of property from fires, break-ins and the like, these things are typically not covered by landlord’s insurance. Ultimately, this leaves the renter in a bad situation. For the most part, renters insurance takes care of the collateral from lost, stolen, or damaged possessions.
What do these kinds of insurance plans typically cover?
Insurance policies for renters are very similar to homeowners insurance policies, as they cover theft, vandalism, fire, weather-related damage, and more.
What doesn’t it cover?
Typically, renters insurance policies will not cover flooding and earthquakes and you may have to take out specific policies for that particular coverage. It is also important to read your policy, for it won’t cover any unlisted hazard.
How much coverage do I need?
As a renter, this truly depends on how much your possessions are worth. For many, coverage plans between $25,000 and $50,000 are enough. However, those with precious valuables often opt for higher coverage policies.
Are you still curious about renters insurance policies? Contact your insurance agency today to find out which policy is right for you.
