After getting an apartment on rent, the next thing to wonder is if insuring your apartment is necessary. When you remember your landlord has bought insurance for the entire building, you feel more reluctant.
However, you must understand that your landlord’s property insurance doesn’t cover you. Hence, you must be able to get your insurance in place for your protection. This is one of the importance of renters insurance.
Renters insurance is essential for several reasons. The importance of renters insurance include:
Liability Coverage
Liability coverage is a part of most renter’s insurance policies. It covers you if someone sustains an injury in your home or if you accidentally injure someone. Also, it covers any court rulings and legal expenses to the policy maximum.
Most insurance covers at least $100,000 in liability and a smaller amount for medical expenses. You can request (and pay for) higher coverage limitations if necessary.
Personal Property Coverage
Renters Insurance covers your items, such as clothing, jewelry, luggage, computers, furniture, and electronics. Even if you don’t have much, it can add up to far more than you want to pay to replace everything.
Standard insurance doesn’t cover floods and earthquakes. These risks demand a different type of insurance. You may require a supplementary rider to cover wind damage in storm-prone areas.
Additionally, renter’s insurance does not cover losses caused by your negligence or intentional actions. For example, if you cause a fire, your insurance policy is unlikely to cover the costs.
Living Expenses Coverage
Your renter’s insurance policy may reimburse “additional living costs,” such as the cost of temporarily living somewhere else, food, etc. They may provide help if your house, for some reason, becomes inhabitable and needs repair.
Hence, examine your insurance to discover how long it will cover additional living expenses. Lastly, check whether the amount the company will pay is precise in the policy.
