Renters insurance is a specific kind of insurance coverage that is designed to protect your belongings when you don’t own your own home. Unlike homeowners insurance, which covers everything including the structure of a dwelling, renters insurance focuses primarily on the contents contained within a particular rented unit. Simply put, renters insurance policies provide compensation for things like loss of or damages to personal property and expenses incurred by forced re-homing.
Now that you know what renters insurance is, however, the big question becomes, is it something worth investing in? Here are a few important things to keep in mind.
Other insurance may not, and probably WILL not, cover your losses.
Many apartment renters make the mistake of believing that, in the event of damage or theft, their belongings will be covered under whatever insurance coverage the property owner has in place. Unfortunately, they learn a difficult and costly lesson when they discover that this is very rarely the case.
Let’s say a pipe bursts in the apartment above yours, causing water to leak in through your ceiling. That water damages your furniture and destroys some of your other items. Or, let’s say someone breaks in while you’re out one evening and steals some of your jewelry or other valuable items. Or, what about if someone visiting your apartment gets injured.
In any of these scenarios, you would likely be on the hook to cover all of your own losses, damages and expenses. And if you don’t have insurance, that could mean a substantial amount of money out of your own pocket.
Some apartments require tenants to maintain renters insurance.
Another important thing to consider is the fact that many apartments actually mandate that all tenants carry renters insurance coverage. In doing so, this provides an added level of protection against liability for the property owner.
If renters insurance is required for a particular apartment, it’s usually written right into the lease agreement, but you should double check with your landlord or apartment locator service to make sure you’re in compliance, just in case.
Not all renters insurance policies are created equal.
The good news is, when it comes to renters insurance, your options are many. Most major insurance providers offer this type of coverage, and many offer multiple different plans and coverages to choose from.
When comparing policies and determining which coverage is right for you, consider your personal needs and circumstances. How much value do you place on your personal property? How old is the building you are renting? These are questions you should ask yourself first, so that you’ll have a better idea of what type of coverage you’ll need. Discussing your situation with an insurance agent can help as well.
Renters insurance is surprisingly affordable.
If you’re on a tight budget, it can be tempting to forego renters insurance, but doing so may cost you big time in the long run. Thankfully, renters insurance is actually quite affordable, and purchasing a policy is super easy. Plus, when you compare the negligible upfront investment to the potential losses you could incur if you were not covered, it becomes abundantly clear just how worth it this type of policy is in the long-term.
Still have questions or need more guidance on apartment living? Get in touch! Our team of experts can provide advice and help point you in the right direction.