6 Good Reasons to Get Renter's Insurance

Introduction

• Renters need an insurance policy to cover personal belongings.
• Landlord's property insurance covers the building but not tenant's belongings or certain liabilities.
• Only 55% of renters have insurance compared to 95% of homeowners.
• Common misconceptions: believe landlord's policy covers personal items or underestimate belongings' value.

Key Takeaways

• Renter's insurance is necessary for personal belongings in rented homes.
• Not covered by landlord's property insurance.
• Renters often skip insurance due to cost or misconceptions.
• Insurance may be required by landlords.
• Relatively low cost.

Reasons to Get Renter's Insurance

1. It's Relatively Affordable

• Costs range from $15 to $30 per month.
• Costs vary based on coverage, deductible, and location.

2. It Covers Losses to Personal Property

• Protects items like clothes, jewelry, electronics, furniture.
• Covers losses from events such as:
  • Fire, lightning, windstorm, hail
  • Theft, vandalism
  • Certain household system malfunctions
• Does not cover floods, earthquakes; separate policies needed.
• Deductibles may apply.

3. Your Landlord Might Require It

• Landlords may require tenants to have renter's insurance.
• Helps shift some responsibilities from landlord to tenant.

4. It Provides Liability Coverage

• Covers injuries to others in your home.
• Pays court judgments and legal expenses up to policy limit.
• Typical coverage starts at $100,000.
• Does not cover damages due to negligence or intentional acts.

5. It Covers Your Belongings When You Travel

• Protection extends to belongings while traveling.
• Covers theft and other losses.

6. It May Cover Additional Living Expenses

• Covers costs if home becomes uninhabitable.
• Includes temporary housing, food, etc.

Is Renter's Insurance Worth It?

• Yes, if affordable, as it provides comprehensive protection.
• Covers belongings, liability, and travel items.

Coverage Details

• Typically covers clothing, electronics, and furniture.

Cost of Renter's Insurance

• Generally $15 to $30 monthly.

Conclusion

• Renter's insurance provides comprehensive coverage for personal belongings and liabilities.
• Essential to understand policy details including coverage limits and deductibles.
• Consider cost-benefit of replacement cost vs. actual cash value coverage.
• Choose an insurance company that suits individual needs.