If you rent an apartment, you may have considered in which situation renters insurance would be useful. You probably know that your landlord has insurance on your rental property, so you may be wondering why renters insurance is important. Rent, utilities, and other costs can add up quickly, so you may be reluctant to add one more item to your monthly tally, especially since it's optional. If you look up the statistics, only about 40% of tenants have renters insurance. With less than half of renters opting in, you may think there aren't many reasons to get renters insurance. While it may not be legally required (though your landlord will on occasion require it as a condition of your lease), purchasing renters insurance comes highly recommended. If something happens in your apartment or to your personal belongings, you'll want to know you're covered.
Why Landlord Insurance Isn't Enough
A lot of tenants mistakenly think they don't need renters insurance because the property is covered by landlord insurance. Unfortunately, your landlord's property insurance only covers the building and surrounding area, and won't protect your personal belongings, liability, or additional living expenses. Many renters underestimate the value of their belongings. If you make a list of how much it would cost you to replace the items in your apartment, you'll start to see why renters insurance is important. Your landlord's insurance does not cover damaged or lost property due to perils such as theft, fire, smoke, vandalism, and more but your renter's insurance does. When something happens inside your apartment, it's your responsibility to cover the cost. The next section will discuss in detail the situations in which renters insurance would be useful.
What Renters Insurance Provides
A huge part of renters insurance is knowing that your treasured possessions are protected in case of covered perils like fire. Renters insurance also covers belongings in your car or that you bring with you when you travel. Your policy will either provide replacement cost coverage or actual cash value, which takes depreciation into account. Another big reason to get renters insurance is the included liability coverage. Legal and medical fees can quickly climb into the tens of thousands if a guest is injured in your apartment. Liability coverage will usually provide at least $100,000 to go towards these costs. The last common element of renters insurance is its potential to pay for additional living expenses. If your apartment becomes temporarily uninhabitable, your policy may reimburse you for costs incurred from living elsewhere.
How To Choose a Policy
Despite all the reasons to get renters insurance, you may still be worried about the cost. Luckily, renters insurance is extremely affordable, often costing around $15 per month. That's nothing in comparison to the financial risks of not being covered. Of course, you'll want to find a policy that fits your needs at the lowest price possible. Rule number one is to shop around. Never go with the first option you find every policy has different features and rates, so make sure to compare quotes. Many insurers offer discounts if you bundle your auto and renters insurance, have safety systems, and more. You'll also want to consider a good balance between your deductible and premium. A higher deductible is riskier but means lower monthly premiums. Remember that renters insurance is always worth it do your research to find which policy fits best.