If you’re renting a home or apartment, it’s tempting to think renters insurance is something you can skip. After all, your landlord has an insurance policy—and you might even feel like you don’t have enough possessions to justify the cost.
However, you have more on the line than you might think! The average two-bedroom rental will include tens of thousands of dollars worth of possessions, making renters insurance a practical way to safeguard your stuff. If you’re on the fence about buying a policy, consider a few facts about renters insurance you may not know.
Your Landlord’s Insurance Doesn’t Protect You
Unfortunately, many renters enter lease agreements under the false assumption that their landlord’s policy will protect renters as well. However, most landlords carry policies that only cover the property itself as well as the landlord’s own possessions. In the vast majority of cases, your landlord isn’t responsible for reimbursing you for items that get stolen or damaged on the property.
Renters Insurance May Be Cheaper Than You Think
It’s a mistake to avoid taking out a policy because you’re worried the renters insurance cost is too high for your budget. The average is around $179 per year, or just under $15 per month—but there are many ways to save money.
Getting multiple renters insurance quotes can help, but most insurance companies also offer discounts for being safer. Investing in deadbolts and fire alarms, for example, may reduce your premium.
Insurance Policies Have Limits and Exclusions
As with homeowners insurance, different renters insurance policies will have different coverage amounts and payout limits. For example, certain expensive possessions like electronics, jewelry, and firearms may have specific payout limits. This is why it’s always a good idea to check the fine print if you have a great deal of valuable possessions in your rental property.
Covers More Than Theft
Stolen property may be a big worry, but renters insurance goes above and beyond the basics.
Apartment and home renters insurance can cover damage from lightning, fires, windstorms, vandalism, and hail. This, of course, is much easier if you have an up-to-date home inventory.
In addition, it can also cover living expenses if the damage to the rented property requires you to leave during repairs.
Beyond damages, some policies will cover additional details as well. These can include property taken from your car or even medical payments to someone injured on your property. It may even include possessions that are in storage, or accidental damage you’ve inflicted on the rest of the building.
Reimbursement Happens in One of Two Ways
In some cases, you’ll receive the cash value of stolen or damaged possessions. This covers the current cost, not the cost of the item when you bought it.
Other policies offer a replacement cost, meaning how much it would cost you to buy a similar item. This means depreciation doesn’t factor into your reimbursement.
Renters Insurance Policies Are Well Worth the Cost
At the end of the day, renters insurance is the best way to protect your belongings from damage, theft, and unexpected accidents. With the low cost of the average policy, there’s no reason not to take the leap!
If you’re working on comparisons to find an affordable policy, we’d love to help. Learn more about what renters insurance covers, or reach out to us for a quote today.