If you rent your home and believe that insurance is for homeowners only, you may want to reconsider. The truth is, renters can benefit from insurance as much as a homeowner. There are some situations where landlord insurance can benefit you, but for the most part you will need yours. Here are some of the reasons why failing to buy renter’s insurance is a risky move.
# 1 – The landlord’s insurance only covers the facility
Suppose for a moment to live in a condominium owned by a large company. So, suppose the condominium catches fire and your apartment is a total loss. The company that owns the building – the owner, if you like – brings insurance, but that insurance only covers the structure. This means that the company will be reimbursed to repair or rebuild the facility, but your personal belongings that have been destroyed by the fire are not covered.
Also, if you have a friend and that friend is injured while he is in your apartment, you may be responsible for paying the damages. This is true even if the injury was caused by something that is the responsibility of the owner, such as a leaking water heater or a short circuit appliance.
# 2 – Your property is precious
Everything that belongs to you, including items such as jewelry, appliances, electronics and other valuables, is under your responsibility. The landlord’s insurance policy doesn’t cover these things, so it’s up to you to buy that coverage. Imagine losing everything you own as a result of a fire, tornado or other disaster and having no way of recovering those losses. This is exactly what could happen if you don’t buy insurance.
The best way to buy a policy that covers your needs is to have all your assets valued and create a portfolio. It is even better if you can photograph particularly valuable objects, which can include expensive electronic components, furniture and antiques. So, you can decide how much coverage you need and choose a policy that works for your budget.
# 3 – Renter’s insurance is cheap
If you put off buying a renter’s insurance policy because you think you can’t afford it, you might be surprised at how inexpensive these policies are. Most renters pay between $ 20 and $ 30 a month for their coverage based on national averages. This is because unlike the homeowner’s insurance policies that must cover everything, including the facility itself and all liability for injury, the landlord’s policy already covers the facility and its policy can also cover the injuries that occur in the your building outside your apartment. You will only have to cover your possessions and some potential injuries that could occur inside your apartment.
The renter’s insurance is designed to cover everything the landlord’s insurance does not include, including everything you own and any injuries that may occur within your rented space. It’s incredibly cheap, so it’s a fantastic investment that no renter should ever go without.