How Renters Insurance Can Offer Protection for Your Personal Stuff

stockvault-twisted-metal109024-PDMore and more people are renting properties these days instead of buying. The reason behind this is the increasing cost of real estate properties. If you are thinking of renting an apartment or a condo, you are on the right track.

When making a budget, include premium for renters insurance. In case you don’t know what renters insurance is, it’s a type of insurance that provides coverage for a renter’s belongings.

Landlord’s insurance is limited

No matter what your landlord tells you, his insurance is not going to cover your stuff. His insurance only covers damages, caused by fire and natural calamities. Your personal belongings are covered by renters insurance.

Do you need it?

You might be wondering whether you need renters insurance. I think you do. Nobody can guarantee that your personal stuff will remain undamaged till the end of the tenancy. Besides, renters insurance comes with a number of coverages, some of which can save you from draining your hard-earned money. Below are some of them:

Liability coverage

Living in a rented apartment means you have to restrict your activities. Your neighbors live right beside you, and if your child accidentally throws a ball breaking one of their glass windows, he’d come to you and ask you to pay for it. More serious incidents could occur. A guest might tip down the stairs and spend two weeks on the hospital bed. Since renters insurance covers such damages, you wouldn’t have to empty your savings account paying for them.

Coverage for personal properties

What if someone steals your stuff? You can’t hold your landlord guilty for this. Being alert might prevent you from becoming a victim of a theft or a burglary, but what about the acts of god? What if a hurricane hits the town, and leaves wreckage in its wake? There’s nobody to blame, you alone would have to suffer all the financial losses.

Renters insurance can save you from worrying about such a situation. If you have expensive items at your house, renters insurance is a must for you then. Some people prefer to keep expensive jewelry items at home, at the risk of those items being stolen. If you are one of them, the bare minimum that you could do is having all those jewelry items insured.

If you don’t have pricey stuff, lower the coverage limit but do insure all your stuff. The benefit of eliminating extended coverage is it decreases your deductibles. But don’t do it unless you have pricey items.

Alternative living cost

Thinking of natural disasters scares us because the possibilities are very real. A fire accident might take place at your home and burn it down, or a devastating hurricane might tear up the building where you are staying. Under any such circumstance, the building won’t be habitable.

You’d need an alternative place to stay. Renters insurance covers the cost of a hotel stay or an alternative stay. Apart from staying, the insurance also covers cost of food, clothing and even the laundry. If you suddenly fall sick, and need emergency care, that cost would also be covered by renters insurance.

A good investment

That’s right. If you think otherwise, here’s two pieces of information that you should consider. The minimum insurance limit required by insurance companies is $25000. The premium that you’d have to pay every month can be as little as $8 a month, which means you just have to stop eating out at your nearest Chinese food joint for a week, and that’s all.

All your belongings including television, music system, computer, kitchen utensils, bed cover, furniture, flower vase, etc cost probably less than $25000. Hence, it’s a good deal without the slightest amount of doubt. The resale price of all your stuff would be pretty less compared to the money that you’ve shelled out when you purchased them.

Automobile insurance waiver

There’s just one catch. You’d have to purchase the insurance policy from the same company, from which you’ve earlier bought the renters insurance. That’s not a problem for you, right. Contact your insurance provider today to find out whether they offer renters insurance (most companies offer it). If they do offer it, then look no further. Auto insurance premium costs are rising at a rapid pace, and getting a discount can help you save money.

Not just belongings

As you can see, renters insurance is not simply about it securing your personal stuff. There’s so much to it that you won’t ordinarily understand unless explained. If you live in a rented apartment, the least you could do for the protection of your stuff, and for yourself is invest in renters insurance.

This article is contributed by Tina Roth, a blogger and the founder of PROfinance, a leading personal finance blog online. She writes about money and personal management tips.

What do you think of renters insurance? Do you have personal belongings worth a lot of money? From which provider you want to buy the policy? 



One Reply to “How Renters Insurance Can Offer Protection for Your Personal Stuff”

  1. Wow, I had no idea that you could get a waiver on your auto insurance if you get renter’s insurance from the same company! That’s really nice, especially since it can help make renter’s insurance a lot more affordable. In fact, I think I will start looking around at different rates and companies to see what I find! Thanks so much for sharing!

Leave a Reply