If you rent out your home and believe that insurance is just for homeowners, you may want to reconsider. The truth is, renters can benefit from insurance just as much as a homeowner. There are a few situations where your landlord’s insurance can benefit you, but for the most part, you’ll need your own insurance. Here are some of the reasons why not buying renters insurance is a risky move.
#1 – The landlord’s insurance only covers the structure
Suppose you live in an apartment building belonging to a large company. Then assume that the apartment building catches fire and your apartment is a total loss. The company that owns the building — the landlord, if you will — has insurance, but that insurance only covers the structure. This means that the company will receive compensation for repairing or rebuilding the structure, but your personal belongings destroyed in the fire are not covered.
In addition, if you have a friend and that friend is injured while he or she is in your apartment, you may be responsible for paying the damages. This is true even if the injury was caused by something under the landlord’s responsibility, such as a leaking water heater or a shorted appliance.
#2 – Your property is valuable
Everything that belongs to you – including things like jewelry, appliances, electronics and other valuables – is your responsibility. Your landlord’s insurance doesn’t cover these things, so it’s up to you to buy that coverage. Imagine losing all of your property in a fire, tornado, or other disaster and not being able to recoup those losses. That is exactly what can happen if you do not take out insurance.
The best way to purchase a policy that meets your needs is to have all your assets appraised and create a portfolio. It’s even better if you can take photos of items that are particularly valuable, such as expensive electronics, furniture, and antiques. Then you can decide how much coverage you need and choose a policy that fits your budget.
#3 – Renters Insurance Isn’t Expensive
If you put off buying renters insurance because you don’t think you can afford it, you may be surprised at how cheap some of these policies really are. Most renters pay between $20 and $30 per month for their coverage by national averages. That’s because, unlike homeowners’ insurance policies that have to cover everything, including the structure itself and all liability for injuries, your landlord’s policies already cover the structure, and his or her policies may also cover injuries that occur. in your building outside your apartment. You only need to cover your belongings and some possible injuries that may occur in your apartment.
Renter’s insurance is designed to cover everything your landlord’s insurance doesn’t cover, including everything you own and any injuries that may occur in your rented space. It’s incredibly cheap, so it’s a fantastic investment that no renter should ever miss out on.