For renters of homes or apartments, the landlord’s insurance may not pay for the loss of the tenant’s belonging in the event of a fire, theft, or some form of disaster. That’s what renter’s insurance is for. A surprisingly low 41 percent of renters carry renter’s insurance.
You may be wondering, “How does renters insurance work?” This article will explain the benefits of renter’s insurance and how this type of coverage works.
How Does Renter’s Insurance Work?
Cheap renters insurance allows tenants to recoup losses following a wide range of unexpected events. Most forms of coverage offer a range of renters insurance benefits that can include protections from:
- Natural disasters
- Household appliances
Renter’s insurance may cover items that were lost in a vehicle. The policy can even protect you from liability if someone is injured while they are on your property. Most renter’s insurance is paid through monthly premiums or through a lump-sum annual payment.
Benefits of Renter’s Insurance
If you are wondering about the benefits of renter’s insurance, here are a few examples of the advantages afforded by this type of coverage.
- Policies are very affordable (sometimes as low as $25/month)
- Reimbursement is quick and easy
- Guests are protected as well
- Landlords appreciate tenants who have renter’s insurance
- Renter’s insurance offers peace of mind
- Policies often cover belongings that are taken on trips
Renter’s insurance policies are customizable. Even if you do not own many expensive items, renter’s insurance can help you quickly recoup lost items.
Renter’s and Homeowner’s Insurance
Renter’s insurance serves a different purpose than homeowner’s insurance. Property owners have insurance that covers all forms of damage to their homes.
In the event of a large fire, homeowner’s insurance would pay for the cost of demolishing and rebuilding a home. Homeowner insurance also covers expensive repairs like roof replacement once a deductible is paid.
Renter’s insurance (also known as Tenant Insurance) does not need to cover major forms of damage to a home, which is one reason why renter’s insurance is surprisingly affordable.
Is Renter’s Insurance a Requirement?
Most apartments require that tenants have rental insurance. Property owners will specify minimum levels of coverage. For apartment owners, a minimum of $100,000 of coverage is typically required.
Landlords often require renter’s insurance as well. For property owners, the coverage shifts some of the liability away from the owners. If a landlord requires that tenants have renter’s insurance, not having the policy could result in a fine or even eviction.
Find the Right Insurance Policy
What is renters insurance? Now, you know. When searching for “renters insurance near me,” look for companies that have a long track record of providing effective and quality renter’s insurance.
The benefits of renter’s insurance go far beyond helping tenants replace lost or stolen items. To find other practical tips and advice for cooking, gardening, and more, follow our comprehensive blog.