Just because you rent your home doesn’t mean you don’t need insurance. Sure, your landlord may carry some type of insurance, but that protects the home itself. It does not protect your belongings. It’s important that you find renter’s insurance that you can afford yet that covers you adequately.
Get today’s insurance rates.Keep reading to learn what to look for in your insurance policy as a renter.
What Type of Coverage is It?
First, you should know that there are several types of renter’s insurance policies. Don’t fall for the assumption that any insurance policy will work. You need to know the details of what is covered. We discuss the most common types of insurance for renters below.
Personal Property Insurance
This is probably the bread and butter of renter’s insurance. Like we said above, any insurance the landlord has covers the home itself. It does not cover the items inside it. That’s what you need personal property insurance to cover.
If there is any type of disaster, your belongings are not covered. For example, the house burns down to the ground. The landlord likely has coverage to build the home again. He does not cover your furniture, clothing, electronics, and any other valuables you had in the home, though. You are left with nothing if you don’t have proper insurance coverage.
As you shop for this type of coverage, though, understand that there are limitations. Some policies limit the total amount of coverage you get while others limit individual items. You’ll want to pay attention to the fine print to see how much coverage you would receive. If it’s not enough, you may need separate riders on things like jewelry or costly electronics.
Liability Insurance
Just because you don’t own the property doesn’t mean you aren’t liable if someone gets hurt on the property. You also need coverage if you were to cause damage to the property itself. The landlord’s insurance won’t likely cover the damage because it was caused by a renter.
Shop and compare insurance quotes.Liability insurance as a renter can protect you in either of these cases. Liability insurance protects you in the event that you were sued or found liable for any damages that occurred. How much coverage you need depends on the amount of your assets and what you need to protect. Asking insurance companies specific questions about this coverage will help you determine if it’s right for you.
Cost of Living Elsewhere
If the home you rent suddenly experiences a disaster and you have to live somewhere else, it can get costly. Let’s say you have to live in a hotel for 3 weeks. You have to pay for the hotel stay, plus the meals that you have to eat out now. This can put you in the poor house rather quickly. The additional living expenses coverage can help cover you in the event that the damages that occurred are covered by the insurance policy.
Read the Fine Print
If there’s one thing we cannot stress enough, it’s to read the fine print of any renter’s insurance. Each company has different requirements and allows different things. Just because one company does not have a limit on personal property coverage doesn’t mean they all don’t. Ask about all of the details of any policy to make sure you know what you are getting yourself into.
Don’t Focus On Premium Alone
It might seem to make sense to focus on the premium, but don’t make this mistake. Of course, you want to keep your costs as low as you can each month, but at what price? So you save $20 each month, but when a disaster occurs and you lose thousands of dollars, you could be up a creek without a paddle.
Give careful consideration to what you can afford should disaster strike. Can you afford to live elsewhere? Can you afford to replenish your belongings? Do you have any very expensive jewelry or other valuables that might require a separate policy?
These are the things you must consider when looking for renter’s insurance. They are not a one-size-fits-all policy. You need a policy that fits your needs. It might not be the same one your neighbor gets. It might not even be the cheapest policy out there. However, if it provides the coverage you need in the face of disaster, it’s the policy you need.
Get the right insurance coverage.