When shopping for renter’s insurance there are some important things to consider. Every tenant needs insurance to protect them in the event of a loss. What does the policy cover? Why is this insurance necessary? Separating the myths from reality will help explain what to look for in a renter’s insurance policy, and the amounts of coverage to consider.
Myth: I only rent so I do not need insurance
As a tenant, you need a renter’s insurance policy to protect your personal belongings. You are obliged to protect your guests while they are on your property, and your own personal actions that may result in a lawsuit. Your landlord’s insurance policy does not extend coverage for tenants; you need to arrange your own renter’s insurance.
Myth: I do not have many belongings to replace
You own a lot more than you might think. If you were to lose everything due to a fire or flood, all of your personal items would need to be replaced. Your clothing, food, furniture, toiletries, linens, and books all add up. Your renter’s insurance policy provides contents coverage so you can return to your standard of living and avoid paying for those items out of your own pocket.
Renter’s insurance policies offer coverage in amounts as low as $15,000. Consider the cost of replacing all or your belongings your contents when selecting coverage limits. Make a special note of any expensive computer equipment, jewelry, sports equipment, or artwork; you can purchase additional coverage for higher value items.
Myth: I am not responsible for my guests
You should know that you are responsible for the safety of your guests while they are on your property. Moreover, you could be held liable for your guests’ actions that cause personal injury to themselves or others. You may be held responsible should your guests damage any property belonging to your landlord. Your renter’s policy provides liability coverage to protect you against severe financial losses. Recommended limits usually start around $500,000 but higher amounts should be considered as more people turn to the courts to settle insurance related disputes.
This section also covers medical expenses in case your guests are injured. Generally, policies provide $1000 per person per occurrence and additional limits may be purchased.
Myth: My guests caused the damage so it is not my responsibility
You are always responsible for your actions and those of your guests and could be found liable in the event of a loss. Renter’s insurance coverage protects you from paying expensive financial settlements out of your pocket. Most policies offer coverage starting at $100,000 per loss due to bodily injury or damage.
Tenants think that only homeowners need to have insurance polices. Your landlord’s policy will not provide any coverage if you suffer a loss. Investing in a renter’s insurance policy today will protect you from possible financial ruin tomorrow.