How Important Is Renter’s Insurance

How Important Is Renter’s Insurance

Most of the time, renters think that everything is covered in their rented home forgetting the renter insurance because most renters think it’s not important. Why? Because there is a misunderstanding that renter’s insurance is expensive which isn’t because it’s easy to get it and fairly affordable based on the coverage you will take advantage of. However, this should not be the case because we do not know what will happen during the period of renting the property. It is best to secure renter’s insurance to be protected from risks such as property damage or loss. 

While renter’s insurance is not required in most circumstances, there are some important reasons why it should be a priority for every tenant. In this article, we will explore the benefits of renter’s insurance and understand how important it is.

What is Renter’s Insurance?

Renter’s Insurance is also known as “tenants insurance”. It is an insurance policy that protects tenants from possible issues and problems that might affect their personal belongings.

In this type of insurance, the owner of the rented home is responsible for the rented home or building while the renters are responsible for their personal belongings. 

Benefits and Coverages of Renter’s Insurance

Typically, there are 3 types of coverage: Personality Property Coverage, Liability Coverage, and Additional Living Expenses.

Personal Property Coverage

According to Kyle Sobko, CEO of SonderCare, Personal Property Coverage protects the tenant’s personal belongings such as clothing, and appliances from damage or loss due to accidents or unforeseen events like fire, theft, etc. When these happen the insurance policy can provide financial compensation to replace the loss or damage. 

Is theft covered by renters insurance?

Yes, if the insurance covers Personal Property, then stolen items or belongings will be replaced. However, keep in mind that you will have to pay a certain amount of money toward the repair or replacement of the insured item before your insurer will help pay for the loss. 

Carefully read the terms and conditions of the insurance to be sure what is covered and what is not.

Liability  Coverage

This coverage could protect you from paying certain costs out of pocket if you happen to be legally responsible for injuries to others or damage to their property.

Loran Marmes, owner of Medicare Supplement Plan says, “Renter insurance can assist with financial security for tenants specifically about the potential cost savings in case of accidents and emergencies through liability coverage because it protects the tenants in terms of legal matters that tenants were possibly held due to property damage to others.  Without the renter’s insurance, tenants may face expenses if they are sued and held responsible for someone else’s property damage. Renter insurance can assist with medical expenses, and legal fees, thus it can reduce the financial burden on tenants.”

Basically, renter insurance contributes to financial security for tenants, specifically about the potential cost savings it can provide in case of accidents and emergencies. 

Additional Living Expenses

When you are renting a house or apartment, unless the lease expired you have a place you can call home. But, what if your “home” is damaged by fire or typhoon that it becomes uninhabitable? That’s where the renter’s insurance plays its role.

Normally, the renter’s insurance covers additional expenses in the event of unforeseen circumstances.  Hotel bills or additional meal expenses in lieu of what you would normally spend are among the covered costs. Again, it is important to double-check and thoroughly read the insurance to see how much coverage you have for unexpected expenses and to review the issues that your policy may cover.

Tips on filing a renter’s insurance claim

Here are some tips to keep in mind as you go through this process. Keep in mind, however, that your claims process may differ based on the type of damage.

  1. Review the details of your insurance policy. Understanding your coverage ahead of time will prepare you for the claims procedure.
  2. Take pictures or videos of the damage. This visual document could help the insurance company determine the degree of the damage and support your claim.
  3. Report the claim to your insurance agent as soon as possible. Most insurance companies have specific deadlines for reporting claims, so it’s important to act quickly.
  4. Keep your items safe from additional damage. Inform your agent of any needed emergency repairs.
  5. Discuss the coverage and limits of your policy with your agent to see what applies to your case.
  6. Keep copies of all receipts, invoices, and other documentation connected to the damage’s repairs, replacements, or charges. 
  7. Lastly, If you have any questions or concerns about the claims procedure, please contact your insurance company for clarification. They can offer recommendations and handle any problems that occur.

Conclusion

In summary, though renter’s insurance is not a legal requirement, it is still essential because it protects your personal items, provides liability coverage, covers extra living expenses, and gives financial stability in the event of an emergency.  It is a fairly affordable means to protect your belongings and reduce potential financial threats. It also offers peace of mind knowing that in times of emergency, you do not have to heavily worry about things. Whatever happens, by using these tips as a guide for getting renter’s insurance and filing a claim, everything will go well.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.