Moving into a rental home offers exciting possibilities for the future as you celebrate a higher degree of personal freedom. Along with that independence comes responsibility, such as investing in insurance to cover your assets. Unfortunately, your possessions are not covered by the landlord’s insurance, which only covers the structure and fixtures. Use this rental insurance handbook to guide your decision to protect your valued things and ensure compliance with your rental lease.
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Check Your Lease
Before you find a find a renter’s policy, determine whether it is a requirement per your lease’s terms. Some landlords require a specific rental insurance amount, so verify the level of coverage necessary to comply with your lease. Other landlords may not require renters insurance, but it is essential for your peace of mind. Imagine the cost of replacing all your possessions if lost due to a damaging event or theft.
What is Renters Insurance?
Renters insurance is a type of property insurance that covers personal property loss and liability claims to the rental beyond structural issues. Anyone living in a rental home can get renters insurance, including those living in mobile homes, apartments, and houses. If injuries are incurred due to structural problems, these are covered by the landlord’s policy. Otherwise, other losses and liabilities are covered under renters insurance rather than paying claims out-of-pocket.
What Does Renters Insurance Cover?
The three basic coverage areas of renters insurance include personal possessions, additional living expenses, and liability. Perils usually included in this important coverage include theft, vandalism, fire, some weather damage, and electrical and plumbing malfunctions that damage your possessions. Additional coverage is available for other hazards, so you should carefully review the policy to ensure it includes comprehensive coverage. Liability is protection against suits and damages incurred by others, while additional living expenses help provide temporary housing if your place becomes uninhabitable due to any covered perils.
Where Can You Get Renters Insurance?
A reputable local insurance agency offers renters insurance for all types of homes and budgets. Consider factors such as the value of your possessions, level of coverage, and the deductible to get the best possible price on coverage. However, the deductible should be something you can afford if a claim is filed for a covered peril. Compare the coverage to get the best insurance for the most competitive cost.
Why Renters Need Insurance
Renters on a budget are always looking to cut costs, but renters insurance should always be included in the budget. Consider the reasons why renters should always have coverage on their rental homes. They include the following.
- Protect personal possessions
- Protect guests and residents of the home
- Avoid financial distress if a claim is filed against you or loss of damages occur
- Provide an affordable way to get peace of mind in case of emergencies
- Fulfill your rental lease requirements
- Protection against unforeseen events such as fire, theft, and natural disasters that could result in significant losses and damages
- Alternative housing options if a covered peril makes your rental home uninhabitable
Comprehensive and affordable renters insurance is essential when renting a home and owning possessions. From your furniture to your laptop, you want to ensure your valuables are covered in case of an incident or theft. Plus, renters insurance might be a requirement of your lease. Contact a local insurance agent to learn more about renters insurance for your home.
