Whether you are renting a home or an apartment, it’s important to find an insurance policy that can cover your belongings. Your landlord will have a policy in place to protect the building itself. Yet, you are in charge of finding a renters’ policy. It will need to cover your own personal items and certain liabilities.
You might have assumed that you’re insured by your landlord’s policy or you haven’t considered the value of your belongings. Start adding things up, though. Consider your computer and other electronics. Add in other household items like clothing. You might be shocked to see you’re already in the thousands of dollars range. Another important thing to consider is liabilities. For example, if someone gets hurt while in your home, they could sue you for damages.

There are a few good reasons why having renters’ insurance is important. Let’s dive right in and take a look at a few of them.

It’s Actually Quite Affordable

The cost of your renter’s insurance policy is going to depend on several factors. It’s dependent on what coverage you actually need, what deductible you want, and where you live. According to the Independent Insurance Agents and Brokers of America, the average cost is $144 per year. This is for $30,000 worth of property and $100,000 worth of liability.

It Can Cover Personal Property Losses

The policy you choose can protect you when you lose personal property. These can include clothing, computers, jewelry, furniture, luggage, and other electronics. You might think that you don’t own that much, but the cost of these things can add up. Having a renter’s policy can help protect you against a lot of different perils.
A standard policy might offer protection from anything, from vehicular damage to falling objects. There’s also protection from theft, vandalism, natural disasters, or even damage from household appliances.

Your Landlord Might Need It

Though your landlord will have a policy in place to protect the building itself, it doesn’t cover your belongings. Landlords requiring proof of renter’s policies are becoming more and more popular. This might even be a rule from their insurance company so that no responsibility can be placed on them.

It Can Cover Liabilities

Most standard renter’s insurance policies will offer liability coverage. This is designed for the outcome that someone is hurt while visiting your home. This includes injury from you (or another covered person) or external circumstances. It can pay for court judgments and legal expenses, up to the policy limit. You can use the standard liability coverage that is offered, or you can request an umbrella policy. They are a bit more expensive but can offer up to $1 million worth of coverage.

It Can Protect Your Belongings When You Travel

Renter’s insurance doesn’t end at your doorstep. It can protect your personal items whether they’re in your home, in your car, or even with you while you’re traveling. Your belongings will be covered from loss due to theft or other losses anywhere in the world.

It Can Cover Extra Living Costs

If you can no longer live in your home due to one of the covered possibilities, your renter’s insurance might cover extra living expenses. This might include the expense of having to live somewhere else (like a hotel), the cost of food, and more.

Talk to Your Insurance Agent

Always be sure to talk to your insurance agent or company to find out what your policy will cover. You need to know if you will receive replacement cost coverage for your belongings or actual cash value for them. Replacement cost coverage will cost a bit more. In the end, it’s important to have renters’ insurance because your belongings are worth more than you realize. Add in the liability aspect of someone getting hurt, and it could cost you a lot without coverage.

Don’t forget that an insurance agent who is a member of MIAA will have many more options to choose from than other agents. Because they belong to an alliance, it allows them access to more carriers and more types of insurance, allowing them to cater to your specific needs rather than just pushing the few options they have available.