A solid renters insurance plan is a great deal. They typically cost very little compared to the value they offer.
Despite this, most renters most renters don’t have one one.
That might be partially due to the fact that many don’t understand what a policy covers. When you realize what protections renters insurance offers, it’s easier to appreciate why it’s worth the minor monthly expense.
Are you an uninsured renter because you didn’t realize how valuable insurance can be?
If so, this guide will help you better understand why you should start looking for an apartment insurance plan today.
What Does Renters Insurance Offer?
There are many factors that are out of your control as a renter. It’s easy for your property to get damaged or stolen without warning.
Renters insurance essentially offers peace of mind. If certain things do go wrong, you’re protected. For example, if a pipe bursts in your apartment and ruins your couch, your plan will likely cover the cost of replacing it.
Unfortunately, there are a number of misconceptions out there about renters insurance. Make sure you’re aware of them so as not to be misinformed.
Don’t Fall Prey to These Myths about Renters Insurance
- Renters insurance offers coverage for your roommate. This is untrue. While you may be able to add family or significant others to a plan if they live with you, an unrelated roommate will need their own plan.
- You don’t need insurance if your landlord has it. In reality, your landlord’s plan will cover the building and items they own, but not any of your personal belongings.
- You don’t need insurance if your parents already have it. The truth is, this only applies if you live with them.
- You don’t have enough valuable items to justify the cost of a plan. Experts actually agree that there is no situation in which a renter is better off without insurance.
What Do Renters Insurance Plans Cover?
The specifics of renters insurance plans vary on a case-by-case basis. Often, customers can tailor plans to fit their exact needs.
However, there are some general areas of coverage that most plans offer. They can be broken down into the following key points:
- Personal Property. Everything from theft to fire can put your belongings at risk. Renters insurance protects you from the financial consequences of these unexpected mishaps. That said, depending on the state, certain types of natural disasters or events may not be covered under a basic plan if they are particularly common in that region. You might also need to add coverage to protect higher-value items.
- Relocation Expenses. Did a covered incident at your property make your home uninhabitable for a period of time? With renters insurance, you get financial help if you need to temporarily relocate to a new place due to a covered incident.
- Personal Liability. Something going wrong in your apartment — like, for instance, a fire — can damage other people’s property, too. Renters insurance protects you in these situations.
- Medical Bills. What if you host a party and someone gets hurt slipping on a spilled drink? If you need to cover their medical bills, renters insurance offers financial help.
You never want to be in a situation where you need to use your renters insurance. Unfortunately, you often can’t prevent these situations from happening.
When they arise, you’ll be glad you’ve taken the steps to protect yourself.
Again, renters insurance costs very little, but it could be worth a lot more than you’ll ever spend on it.