If you are a homeowner, you would most likely not think twice about getting homeowners insurance. In fact, most lenders will require that you do. As a renter, however, you are not generally obligated to purchase renters insurance. There are, however, a number of very good reasons why you might want to. Here are 5 reasons you need renter’s insurance.
You Get Lots For Little
Most renter’s insurance can be bundled in with auto insurance. In many cases, insurance companies will actually give you a discount on auto insurance so that your renter’s insurance is basically free. At most it might cost you a few dollars a month. Considering the average renter generally has about $20,000 in possessions, that few dollars a month covers a lot.
Losing Your Belongings All At Once Can Be Catastrophic
College students in particular are known for having few valuables. But when all of your clothes, your phone, your laptop and what furniture you do own goes up in smoke, it can be prohibitively expensive to replace it all at once. Considering that most renter’s insurance costs less than $200 a year, it’s more than worth the expense.
Covers More Than Just The Cost Of Your Possessions
If your residence becomes uninhabitable for some reason, most renter’s insurance will cover the cost of your living expenses if you need to temporarily vacate the premises”, says K. Shannon Cook, RE/MAX real estate agent in Ohio. This can include the cost of a hotel room, food, personal items and other expenses you may incur as a result of being unable to access your residence. Depending on the reason you need temporary lodging elsewhere, your landlord’s insurance might cover it, but you might not want to wait until disaster strikes to be sure.
It Covers Your Belongings When You Travel
Basically, renters insurance covers pretty much anything you own. So, if you take your laptop with you on a trip to Spain and it is lost or stolen, it may be covered under your renters insurance if it is not covered under traveler’s insurance. If something is stolen out of your car at work or while on campus, your renter’s insurance will most likely cover that as well. Renter’s insurance covers your possessions, it doesn’t really matter where you are when something happens to them.
It Might Be Rehired Under The Terms Of Your Lease
Your landlord is responsible for insuring the structure and grounds, but you are responsible for all of your possessions. More and more, however, landlords and leasing agencies are requiring renters to purchase renter’s insurance under the terms of the lease. This helps shift liability away from the landlord’s insurance company. While your landlord might not require that you provide proof of insurance when you sign the lease, if it is stipulated in the lease agreement that you need to carry it, you could have a serious issue if a crisis hits and it turns out you don’t have it.
Bottom line, for a few dollars a month, it’s better to be safe than sorry!