Is Renters Insurance A Necessary Expense?
Buying renters insurance might seem like a frivolous expense to some renters. After all, their landlords have property insurance. The reality is that the property insurance might not cover many of the expenses that renters have due to a disastrous event. If you do not have the right protection, you could be left paying out-of-pocket for your losses. If you are on the fence about renters insurance, here is what you need to know.
Why Is Your Landlord's Property Insurance Not Enough?
Unless your landlord has opted for more extensive coverage, there is a good chance that your belongings will not be covered in the event of a disaster. The landlord's property insurance likely only covers damage to the building and its structural components.
For instance, the flooring in your apartment will be covered by your landlord's policy if there is flooding. However, your furniture that was in the apartment and damaged by the water might not be. In this scenario, you would be out of luck with the insurance company.
What Does Renters Insurance Cover?
Renters insurance is far more extensive than many people realize. It does not just cover your furnishings if you are experience a disaster, such as a fire, flood, or theft. It can also cover other expenses that can result from accidents and disaster events.
For instance, instead of moving in with family or friends after your apartment or home is damaged, the insurance can help to cover the costs of staying in a hotel. Even if you rent another home or apartment while your rental is being repaired, it can help with the costs.
Depending on the extent of the coverage, it could even help to cover damages caused by you or your children to others. For instance, if your child breaks a neighbor's television, the policy could help with the replacement costs.
Even if you leave your rental apartment or home, the insurance can help you. If your items are stolen or damaged while you are away from home, such as visiting your parents in another state, the insurance company would provide you with a percentage of the replacement costs.
Before making a final decision on renters insurance, talk to a broker. He or she can help you assess the value of your possessions and help you determine if coverage is right for you. If so, he or she can help you find the coverage that fits your needs.