There are a lot of people who think they do not need insurance when they rent a home or apartment. Many renters believe that their landlords offer coverage, but this is not really true. A landlord's policy is limited, and you should never rent a place without getting your own insurance coverage. Here are three main reasons you should purchase renter's insurance if you live in a rental property.
Your Landlord's Policy Doesn't Cover Your Belongings
The one thing a lot of renters do not realize is that the insurance policy their landlords have does not cover their personal belongings. The policy a landlord has covers the building only. For example, if a fire caused the building to burn down, the landlord's policy would cover rebuilding it. It would not cover the things the renters owned and had in their units.
If the things you own matter to you, and if they are important to you, you will need a renter's insurance policy. If the same fire that destroyed the building destroyed the things you own, your policy would offer compensation for you to replace the things you lost.
When you purchase a policy, just make sure it offers enough coverage for everything you own. You may also want to ask the insurance company if the policy offers replacement value coverage or actual cash value coverage.
There is a big difference with these two types of policies. Replacement coverage is the better choice, because it compensates you for the amount of money it would take to buy all new things. Actual cash value coverage only compensates you for the actual value of the items, and this takes depreciation into consideration.
The Policy Covers Additional Living Expenses
You should also realize that if a fire destroyed your apartment, you would probably still have to pay rent for the unit even if you could not live in it. In addition to paying rent for the unit you cannot live in, you would have to find another place to live while the repairs were being made, and you may have to pay for this too. Could you afford rent for two apartments? Most people could not, and this is another reason to get renter's insurance.
Renter's insurance allows you compensation for times like this by giving you money to cover additional living expenses if you are forced to live somewhere else due to an insurance claim.
It Protects You Through Liability Coverage
The other reason you should have renter's insurance is to protect yourself against accidents that could potentially occur inside your rental property. While it is rare for someone to get injured in a person's apartment and then sue the person, it could happen. Fortunately, renter's insurance offers liability coverage for this purpose.
If someone comes inside your apartment and falls on your wet bathroom floor, he or she might sue you for the cost of injuries. This could be devastating to your budget if you did not have renter's insurance. With renter's insurance, you would not have to pay out of your pocket for the costs of the lawsuit. Your insurance company would pay the settlement, and this could help you save a lot of money in this type of situation.
These are the main three reasons you should never rent a house or apartment without having a renter's insurance policy on the rental unit. If you currently rent the house you live in and need coverage, contact a company, such as State Fund Insurance, that offers homeowner's insurance. They will help you find a renter's insurance policy that is right for your needs and budget.