Renters Insurance is Important for Renters
Imagine being a renter and finding out that your apartment and all its contents were destroyed due to, for example, fire resulting from a neighbor’s kitchen. If you think your landlord would provide compensation for such a loss, you would be wrong. A typical landlord’s policy covers the structure, or the dwelling itself, but not personal belongings of tenants who live there. Usually a renter’s policy will take care of losses resulting from fire, theft, a busted water pipe, weather events, etc. Keep in mind that this policy will almost always exclude coverage for floods, hurricanes, or earthquakes. Individual policies must be purchased for these types of events. Should you rent in a region prone to one or more of them, it is a good idea to investigate more coverage.
Whether you’re new to it or are a veteran renter, it is important to remember what condition you may find yourself in financially should some kind of an incident were to occur that meant the loss of your rental home. By purchasing a good renters insurance policy you could likely one day save substantial amounts of money as a result of being so well protected. Many landlords now mandate that tenants purchase renters insurance before moving in. But whether it is required on a lease or not, renters would be smart take advantage of the protection that these insurance policies offer.
Insurance can also help to protect a renter’s financial situation in other ways. For instance it can provide protection from lawsuits should someone be hurt on the renter’s premises. The liability aspect of the coverage can compensate the policyholder for legal expenses resulting from a lawsuit. This kind of coverage will also cover the medical costs if someone is injured on the tenant’s property. The policy can even help with paying for living expenses if the rented dwelling is damaged in a covered incident to the extent that it is unlivable.
When a claim needs to be filed, one should be sure premiums have been kept up and one should also be prepared to pay a deductible. (Generally, the larger the deductible the lower the premium.)
For a relatively small investment, a renter can be assured that his or her personal possessions and financial liabilities are dealt with by an insurance policy specifically created for renters.