Compared to the cost of replacement, do I need renters insurance?
What is the cost of renters’ insurance?
Young couple weighing their options for renters insurance Insurance isn’t always a top priority for renters, according to MILATON BROWN/CAIAIMAGE/GETTYIMAGES.
It may rank alongside purchasing insurance against alien abduction as an unnecessary additional expense for some individuals.
However, landlords frequently require tenants to have renters insurance because it is an essential means of safeguarding your financial well-being.
Let’s take a look at what renters insurance is, what it covers, and how much it typically costs to help you determine whether you need it.
What is the process of renting insurance?
In the event of a disaster, you might think that your landlord’s property insurance would cover damage to your belongings. However, you’d be wrong. Your landlord’s insurance only covers the building’s structures and common equipment, as well as their liability for injuries sustained on common property. However, renters insurance is required for your personal belongings.1 After signing a lease, many landlords will require you to provide proof of renters insurance. Your insurance agent will be able to assist you in determining the amount of coverage you require and any optional riders.
Note that if you have a renters insurance policy, you can file a claim for any covered damage. The damage or loss will be covered by your insurance, less any deductible that may be required.
What is covered by renters insurance?
The following are some typical fundamental coverages that are included in most renters insurance policies:
Your personal liability for injuries to others while on your property (both for medical payments and lawsuits) Additional living expenses, such as what you pay for a place to live while your insured apartment is being repaired or is otherwise unlivable due to a claim Your contents or personal belongings at home Contents or personal belongings away from home
