Is Renters Insurance Worth It?
The vast majority of homeowners elect to pay for homeowners insurance, and with good reason. Insurance protects you from unforeseeable disasters that can leave you stranded, and these policies help families rebuild. That’s why it may come as a surprise that less than 45% of renters have renters insurance. Apartment buildings and rented homes are just as likely, if not more likely, to go up in flame or experience the same unfortunate events that homeowners face. Even though it is very affordable, many people simply overlook this defensive measure.
What Renters Insurance Covers
Most insurance companies offer plans that start around $200, and these policies usually protect valuables up to $100,000. If you already have car insurance with the company, see if they offer discounts for bundling policies. Renters insurance protects policyholders from lost or damaged property, which is a huge deal. If someone breaks into your rental and steals your laptop, renters insurance should cover that. If your upstairs neighbors clog the toilet and flood your apartment, renters insurance will not only cover any lost possessions, some policies will even help you find temporary accommodations while your landlord fixes the mess. Even if your roommate forgets to turn the stove off after making dinner and burns down the house, you’ll be covered.
Depending on the policy you go with, other items can be protected that aren’t even inside your apartment. Property that is stored in a storage unit may be covered from accidental fires, flooding, and burglary. Now you can store things with peace of mind. Speaking of peace of mind, renters insurance can help you finally go on vacation without any stresses back home. You won’t have to worry if you remembered to lock the bathroom window, or if any criminals saw your Facebook post about going out of town. If you come back home and things are lost, you are covered.
Another major consideration for having renters insurance is the protection it offers from civil suits. Law firms are dedicated to bringing forth claims against irresponsible renters that didn’t take enough action to prevent a guest from suffering a personal injury. The policy likely has coverage for basic liability and medical payments in the event that someone accidentally gets hurt while staying with you. Which means you will be protected from any legal fines or medical bills.
Types of Policies
If you are convinced that you need renters insurance, the next step is understanding the ways that policies replace your lost or damaged property. Some policies offer actual cash value for replacing the property, which means that you will receive cash for the actual value of what was lost at the time it was lost. Replacement value is a type of policy that will replace your lost items, no matter what condition they were in at the time the damage occurred. Pay close attention to this divergence, as it makes a big difference when you need to make a claim and replace your old laptop.