As a renter, it is often your responsibility to protect your home and your possessions, should the unfortunate occur. However, very few renters actually do this.
According to the latest figures, a mere 37% of renters have home renters insurance of any kind. Conversely, a whopping 95% of homeowners have home insurance. This kind of imbalance should be seen as alarming since renters are at the exact same risk of loss and damage as homeowners are.
That’s why it is important to get quality renter’s insurance as soon as you are able to do so. Read on to find out everything you need to know before you call the home insurance agency.
1. Your Property Is (Mostly) Covered
Crucially, home warranty insurance will cover damages and losses for the vast majority of reasons. Any quality policy should cover the costs of your losses that are incurred as the result of the following:
- Fire
- Theft
- Vehicle damage
- Smoke damage
- Vandalism
- Ice and freezing
- Water system disruption
- Explosions
- Gas leaks
- Electrical damage
More policies will also cover a range of other factors, so read the small print carefully.
2. Disaster Coverage Is Usually Extra
As we all know, natural disasters are becoming increasingly common. Despite this, a large number of renter and homeowner insurance policies do not cover damage from floods or wildfires on their own.
Instead, you will have to specifically take out disaster policy coverage or pay for this as an add-on to your existing coverage. It will be more expensive, but it is worth it.
3. Insurance Costs Vary Massively
When pondering how much is home insurance, the answer depends on a multitude of factors. As this expert guide to homeowners insurance explains, how much you pay will change massively depending on the state you live in, as well as the type of dwelling you reside in. Do not assume that you will pay the ‘average’ home insurance cost, as many factors can lower or raise your monthly fee.
4. Home Renters Insurance Is Not a Legal Requirement
Many people falsely assume that rental insurance is a requirement. However, this is not mandated by law anywhere in the United States. This does not mean that you can take a relaxed approach to rental insurance.
If you choose not to get coverage, that is up to you. However, this also means that you must bear all of the costs relating to damage, theft, or vandalism in your home.
5. You Might Already Be Insured Without Realizing
Finally, it is worth checking to see whether you actually need to take out a renter’s insurance policy. Oftentimes, insurance is already in place before you move in, as the landlord or developer will have taken out an extensive policy that effectively covers all tenants.
Do not be afraid to ask your landlord what your current insurance situation is, as you might be pleasantly surprised.
More Insights for Better Home Living
Knowing the ins and outs of home renters insurance is just one important way to ensure a more secure living situation. For more expert insights on better home living, we have got you covered.
Make sure to consult our expertly-curated Home Improvement guides to learn more about living your best life.
