Are you currently asking yourself “how much renters insurance do I need?” If the answer is yes, click here to learn more about the topic!
No one likes to pay for insurance policies. You are paying for something you hope you never need. However, if you ever do it, you are very glad to have one.
When someone rents an apartment or home, they need to ask is renter’s insurance required. Not all buildings or landlords insist that you have it, but even if they don’t, it is still a good idea.
Rental insurance not only covers your personal belongings, but it also covers liability for those inside your home and can also help provide temporary housing if you can’t stay at your place.
Read on for answers to the question “how much renters insurance do I need”, and all the benefits of having it.
Do I Need Renter’s Insurance?
If you are renting living space from someone else, then you need renter’s insurance.
Your landlord has insurance on the building, but they do not insure the personal property that you bring with you. Even if you don’t think your belongings are that valuable, they are to you and it will cost to replace them if they get damaged or lost completely.
The landlord is also not responsible for any liability claims that someone may bring against you if they are hurt inside the home or apartment.
Renter’s insurance also provides coverage if the residence becomes unliveable.
It is also a good idea for college students who live off-campus to have apartment renters insurance. Dorm living is covered under a parent’s insurance, but renting a place away from the campus is not.
So the answer is yes, you do need renter’s insurance. It provides protection and peace of mind.
What Does Rental Insurance Cover?
Let’s go over everything rental insurance covers.
Personal Property Loss
Rental insurance covers the replacement cost for personal belongings that are destroyed or damaged. This could be by water damage, power surges, fire, or theft.
Most basic policies do not cover earthquakes or flooding. If you live in an area prone to these occurrences, you should talk to your rental insurance agent about this additional coverage.
You may not think your property has a high value, but when you add everything up, you might be surprised to find out how much it would cost to replace everything. There are also dollar limits set on your policy, so you will only be able to recover up to those limits. Make sure you understand those limits, and if you have more expensive items like antiques or expensive jewelry, you may need to increase the amount.
Liability Loss
No one expects their guests to get injured while visiting, but accidents happen, and it is a good idea to be prepared. They may slip and fall or get bitten by a pet. The liability portion will pay for their medical bills and even lost wages.
This part of the coverage also offers protection if you have a water leak, or another event, that damages the personal property or apartment of someone living below or beside you.
It also protects you against a lawsuit if someone chooses to file one.
Loss of Use
Sometimes events occur that leave your residence uninhabitable. It could be a tree that fell through the roof or maybe there was a fire. You need somewhere to live now, so what do you do?
Rental insurance provides coverage for hotel rooms and food while you are out of your residence. It gives you time to figure out your next step or just simply wait a few days until repairs are made, and you can move back in.
How Much Renters Insurance Do I Need?
So you have decided that getting renter’s insurance is a good idea, but now you need to know how much insurance to buy.
Personal Property Coverage
Your first step is to do an inventory of all your personal belongings. This means everything. Your clothes, furniture, electronics, kitchen stuff, jewelry, tools, and sporting equipment. Anything that you would want to replace if it was destroyed should be on that list. Then figure out the replacement cost.
If that seems like too much time and work, the average personal property coverage for an apartment is around $40,000, and a home would be in the range of $100,000.
Another good piece of advice is to take pictures and make a list of your most valuable items. This could come in handy if an emergency does take place and you need to verify your loss.
Policy coverage for belongings ranges from a couple thousand dollars up to hundreds of thousands. It truly just depends on what you need to replace and how much insurance you can afford to pay.
Liability Coverage
Most insurance companies recommend liability insurance in the range of $100,000. This amount should cover the damages of most incidents.
If you are particularly concerned and want more coverage, this amount can be increased without too much-added expense to the policy.
Little Known Extras
One thing you may not know about renter’s insurance is that it follows you when you travel. If you are away from home and some of your belongings are lost or damaged, you can file a claim. Theft is part of the policy, so if they are stolen, you are still covered.
Rental insurance also provides coverage for your belongings during short-term rentals to another party, like an AirBNB guest. There may be certain restrictions and you should discuss with your insurance agent, but it is nice to know you can be protected if someone else damages your property even if you are not there.
Yes, You Need Rental Insurance
If you were looking for answers on how much renters insurance do I need, then you should have the answer.
Whether you are looking to replace your personal belongings or protect yourself against liability if someone is hurt in your home, renter’s insurance is the peace of mind you need.
With many options available and affordable packages, there is a policy that will work within your budget. It only takes a few minutes to protect yourself.
Call your insurance agent today!