The Importance of Renters Insurance

Did you know that your belongings are not covered by the property owner’s insurance? That’s right, the insurance that the owner or homeowners association carries covers the real property only, not your personal items. So in case of a fire, flood or other peril you could not only be left without a home; you could literately be left with nothing. Renters Insurance is not expensive when you consider how much money it would take to replace your furniture, clothing and electronics. It’s just a good idea. There are different kinds of coverage so make sure you do your research before committing to a plan.

Basic Renters Insurance

This option will help replace your personal property such as furniture, electronics and clothing. This coverage will protect you from loss, damage and theft. This also helps with temporary housing, food and additional living expenses if you are displaced from your rental.

Renters Liability Insurance

Many policies include some kind of liability insurance so if someone get hurt in your rental you will have some financial security if they decide to sue you. When shopping around, ask about liability insurance. If it’s not included in the basic policy find out how much it would cost to add on.

Flood Insurance

If you live in a flood prone area, even if you have renters insurance, most will not have coverage for floods. This usually applies to items on the floor such as your furniture. Find out if you live in a flood zone, then ask your agent about flood coverage.

Accidental Damage Insurance

Accidents happen, a lot. Would you be prepared to pay for an expensive repair bill for accidental damage to your rental property caused by you or a guest? If you’re moving your furniture around and accidentally break the sliding glass door or forget that you left the tub running and it overflows damaging the flooring, cabinets and the apartment below, chances are your landlord is going to charge you for the repairs. Damage insurance will cover accidental damage and protect you from a big repair bill that you may not be able to afford.

Many property management companies are making renters insurance a condition of their lease and many more will probably follow suit in the near future. Renters Insurance is just as important as automobile and health insurance; while you may not use it everyday, it’s there when you need it and can potentially save you from a devastating financial loss. Consider looking into renters insurance for your own peace of mind.

Resources

Allstate Renters Insurance 

Nationwide Renters Insurance

Liberty Mutual Renters Insurance

Check with your landlord, Atlantic Real Estate Management offers it’s tenants accidental damage insurance for under $10 per month.

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