If you rent your home and think the insurance is only for homeowners, you may want to reconsider. The truth is that renters can benefit from insurance just as much as homeowners. There are some situations where your landlord’s insurance can benefit you, but in most cases, you’ll need your own. Here are some of the reasons why not buying renters insurance is a risky decision.
#1 – Landlord’s insurance only covers the structure
Suppose for a moment that you live in an apartment building owned by a large company. Next, suppose the apartment building burns down and his apartment is a total loss. The company that owns the building, the landlord, so to speak, has insurance, but that insurance only covers the structure. This means that the company will be reimbursed for repairing or rebuilding the structure, but your personal effects that were destroyed in the fire are not covered.
Also, if you have a friend at home and that friend is injured while he or she is in your apartment, you may be liable for damages. This is true even if the injury was caused by something the landlord is responsible for, such as a leaking water heater or a shorted appliance.
#2 – Your property is valuable
Everything that belongs to you, including jewelry, appliances, electronics, and other valuable items, is your responsibility. Your landlord’s insurance policy won’t cover these things, so it’s up to you to purchase that coverage. Imagine losing everything you own to a fire, tornado, or other disaster, and having no way to recoup those losses. That’s exactly what could happen if you don’t buy insurance.
The best way to buy a policy that meets your needs is to have all your possessions appraised and build a portfolio. It’s even better if you can take pictures of items that are especially valuable, which can include expensive electronics, furniture, and antiques. Then you can decide how much coverage you need and choose a policy that fits your budget.
#3 – Renters insurance is cheap
If you put off buying a renters insurance policy because you think you can’t afford it, you may be surprised how affordable some of these policies actually are. Most renters pay between $20 and $30 a month for their coverage based on national averages. This is because, unlike homeowners insurance policies that must cover everything, including the structure itself and any liability for injuries, your landlord’s policy already covers the structure, and your policy may cover injuries as well. that occur in your building outside of your apartment. You will only need to cover your belongings and some potential injuries that could occur inside your apartment.
Renters insurance is designed to cover everything that homeowners insurance doesn’t, including everything you own and any injuries that may occur inside your rental space. It is incredibly affordable, making it a fantastic investment that no renter should be without.