7 Reasons Why You Need Renters Insurance in Real Estate
Do I Need Renters Insurance And How Much Should I Get? Do you own anything? Otherwise, you can stop playing. But… if you have a physical property and are renting it out, you need renters insurance. Renters insurance is a great (and inexpensive!) way to protect your property and finances. Because let’s face it. It will be very expensive to replace all your belongings if they are destroyed in a fire or stolen.
Ahhh. The sweetness of the fireplace. There is nothing quite like the feeling after coming home from a long trip. Or the moment when you take the keys to your first house and walk through the front door, lie down and make snow angels on that plush living room rug (weird, but we get it).
But now that the new home smell has dissipated, it may be time to double-check your home coverage. Or maybe you’re buying home insurance for the first time and wondering how much you really need. And what does home insurance cover?
Home insurance can be confusing. If my basement floods, will I be covered? Or what if a tornado swept through my neighborhood and ripped off my roof? Am I responsible for the repair?
Check out seven reasons why you need renters insurance!
But first.
What is renters insurance? Renters insurance is a type of property insurance that pays to replace your belongings if they are damaged, vandalized, or stolen while you are renting. It protects you against financial losses from unforeseen disasters such as fires, electrical short, clogged drains, and fires. Without renter insurance, you could end up using your savings to replace everything you’ve lost. Not good.
Is Renters Insurance Mandatory? NO, However, an increasing number of landlords are requiring tenants to purchase tenant insurance prior to finalizing a lease.
7 Reasons Why You Need Renters Insurance
Renter’s insurance may not be necessary, but it’s still important. If you’re wondering, do I need renters insurance? here are seven key reasons why it’s a smart move.
It Helps To Replace Your Tool
If we think our furniture really isn’t worth much, we assume it’s easier to replace them. But the reality is, for most of us, clothes, furniture, and electronics are worth thousands of dollars. Replacing everything will not be an easy task. But many of us still underestimate our tools. This is partly because we buy it for a long time. We don’t really see how much it’s worth unless we really stop and think about it.
-
It Fills The Gaps In Homeowner’s Insurance
Another reason people don’t see the need to buy renters insurance is that they (erroneously) assume that homeowners insurance will cover them. Incorrect. Your homeowner’s insurance only covers their building, not your belongings, no matter who is at fault.
-
It Protects Against lawsuits
Renters insurance also protects you from lawsuits that exceed your budget. For example, if someone suffers damage to a property you rent, they can sue you. The liability section of renters insurance will help pay for legal fees and even court rulings if you are found guilty and have to pay a lot of money. Responsibility protects you even if someone else’s things are damaged. For example, if your child accidentally breaks an expensive vase at your friend’s house, you are protected.
Even for renters with more savings, the cost of a lawsuit or a dog bite can be a sizable financial impediment. And renter’s insurance also covers some medical expenses for these types of accidents.
-
In-Expensive
Renters insurance is one of the cheapest of all the different types of insurance you can get. It only costs about $15 a month on average.1 So even if you’re working hard to pay off those student loans or saving up to pay for your first home, you still have can spend 50 cents per day. to secure your business.
-
May Be Necessary
Another reason you should buy renters insurance is that you may need it. Again, an increasing number of landlords are asking tenants to have this ready before their application is approved.
-
You Will Be Covered During Your Trip
Did you know that renters insurance protects your belongings even when you travel? So if your favorite handbag is broken into during this tour of the Louvre Museum in Paris, your renter’s insurance will pay to replace it. Satisfied!
-
It Covers Additional Living Expenses
If your home is completely destroyed, forcing you to temporarily live elsewhere, renters insurance will begin with what is known as additional cost of living (or loss of use insurance). It will pay for things like staying at hotels and restaurants while you wait for your apartment or house to be rebuilt or repaired.
