If you’re renting a home or an apartment, then it’s important you obtain renter’s insurance to help protect your belongings. Only a renter’s insurance policy will cover your personal belongings (and certain liabilities) in the event of theft or damage to your personal property. With the generous coverage and affordable monthly premiums, it’s a smart investment.
While your landlord will have a property insurance policy, it usually only covers the losses of the building you’re renting – not your belongings.
Here are five reasons why you should consider taking out a renter’s insurance policy.
Renter’s Insurance is Affordable
Perhaps the best thing about it is that it’s dirt cheap in the grand scheme of things – typically costing no more than a few hundred dollars annually. That’s less than a cup of coffee daily and gives you peace of mind.
It Protects Your Belongings
Renter’s insurance will protect your personal belongings if they’re damaged, stolen, or if there’s a fire. Many renter’s insurance policies will additionally cover your personal belongings in the event of:
- Water damage
- Power surges
- Other catastrophes you didn’t cause
Your Landlord May Require Renter’s Insurance
As mentioned, your landlord’s insurance will typically only cover the building and property, not your personal belongings. And, many landlords today are requiring tenants to have their own policies. Requiring it takes some of the responsibility off of the landlord and places it on the tenants.
It Protects Your Guests
Renter’s insurance will help cover accidental injuries that are sustained on your rented property. This is particularly applicable when it comes to pets. You’re liable if your pet bites a guest accidentally while visiting the premises. In fact, there are dog-bite statutes in many states requiring you to actually compensate your guest if an event like this should happen.
Renter’s Insurance Covers Damage You Cause
Sometimes the renter can cause unintentional damage to the property such as:
- Items falling because they weren’t secured properly
- Water flooding in the washroom
- Glass breaking
If these or other unintentional accidents should occur, then they can ruin the carpet, walls, and your furniture and you will be responsible for the costs. It can help cover these types of accidents.
Without renter’s insurance, you’d be on the hook for replacing or repairing any damaged property and belongings out of your own pocket. Your furniture, clothing, appliances, or that $1,000 laptop that was damaged in last week’s apartment fire are all your responsibility unless you purchase renter’s insurance.
When taking out a policy, you’ll want to ensure the coverage you get is as much as or greater than the value of your personal items. Obtaining sufficient coverage will protect you in even the worst-case scenario.
We’re Here to Help!
If you’re looking for more information, we offer this type of insurance through our insurance partner, TruStage. Here’s a link to more information. It’s definitely a worthwhile investment for any renter.
Feel free to stop by any of our convenient branch locations or contact us.
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Each individual’s financial situation is unique. We encourage you to contact United Texas Credit Union when seeking financial advice on the products and services discussed. This article is for educational purposes only; the authors assume no legal responsibility for the completeness or accuracy of the contents.