5 Reasons Why You Need Renter’s Insurance!
Many renters are under the misconception that their landlord’s insurance policy will cover them in case of an incident. However, these types of policies only cover losses to the building itself. Tune in to learn why you may want to consider purchasing a renter’s insurance policy.
1. Protecting Your Personal Belongings
People underestimate the total value of their belongings, but if you take a minute to add up the value of your electronics, furniture, etc., it won’t take long to reach the thousands of dollars. Some of us may not have money to replace all these items if anything were to happen to them, let alone everything else in our homes. Things like your clothing, jewelry, furniture, etc.
2. Protection Against Many Perils
Renters insurance protects against a rather surprising list of perils. One of the most common ones being damage from water backups. However, if you are worried about things like damage caused by vehicles, fire or lightning, smoke, theft, vandalism, windstorm or hail, and falling objects, insurance will cover this and more.
3. Liability Coverage
Standard policies come with liability coverage. This means you’ll be protected if someone is injured in your home (or if you accidentally injure someone) and they sue. The insurance can pay for legal expenses or court judgements up to the policy limit.
4. It’s Affordable
According to Business Insider the average cost of renter’s insurance is about $15 a month. This small additional cost is definitely worth it when compared to the value of what you’re protecting.
5. Coverage While Traveling
Whether your personal belongings are with you or not while traveling, if they are stolen, renter’s insurance will have you covered. Your possessions are not only covered due to theft, but other covered losses as well. Of course, every policy is different, so check your policy details on what constitutes “other covered losses.” In fact, your policy may pay for additional living expenses or food costs if you need to temporarily live elsewhere due to your home becoming uninhabitable.
Types of Coverages to Consider
Actual Cash Value: covers an item at the amount originally paid for or the amount minus its depreciation.
Replacement Cost Value: allows you to replace your items with similar items at current market value.
In this episode, Luis talks about the following and more:
- You’re not covered by your landlord’s policy.
- Protecting your personal belongings.
- Liability coverage.
- Covering your belongings while traveling.