If you rent your home, you already know about tenant struggles like leaky pipes, A/C problems, issues with the landlord, and more. And if you don’t already have it, have you considered renters’ insurance?
Why do I need renters’ insurance? It protects your belongings. In case of unexpected events,
it covers the cost of damage to your property, including furniture, appliances, electronics, and
sentimental items, saving you from potential financial loss.
What does it cover? The following personal property items are guaranteed to be
protected: smart devices, shoes and clothing, beds, recliners and sofas, tables, chairs, rugs,
and other furniture items. While choosing a renters' insurance policy, make a list of
essential possessions in your home and ensure they are covered.
Liability: Renters’ liability insurance also protects you in case you inadvertently cause damage
to someone else, someone’s property, or something belonging to your landlord. For example,
a friend accidentally breaks one of your landlord’s possessions. Some policies will even cover
court costs if necessary, but you must read the policy carefully.
Additional covered expenses: If your home needs major repairs, you may not be able to live
in it for a while. The best renters' insurance should cover the costs you’ll incur during that
time away, such as hotel stays, meals bought instead of cooked at home, and other
expenses.
What does renters’ insurance not cover? Earthquakes, riots, and pests. They do NOT cover
bedbugs and other pests. While your landlord may be willing to help eradicate the pests, your
policy probably won’t pay for the cost of the resulting damage.
Does renters’ insurance cover water damage? It depends on what caused the water damage
in the first place. If something valuable is damaged by a burst pipe or leaky sink, your
policy may cover the costs. But if a natural disaster floods your basement, you might be
out of luck.
Does renters’ insurance cover theft? Sometimes! If your personal property is stolen from your
home, your policy should pay the cost of that property, but it doesn’t cover vehicle theft.
However, if a thief breaks your car window and steals items from your vehicle, your policy will
not pay for the car damages—but it may pay the costs of those stolen items. What about
clothing? Yes, even laundry theft is covered.
What is the cost of renters’ insurance? The price of rental home insurance varies depending
on what you want to protect. Generally, a policy will cost around $200 or less per year. If you
cover more items or protect against specific scenarios, you must pay more to ensure your
policy is prepared for those instances.
Why do landlords require renters’ insurance? Landlords want to protect you, themselves,
and everybody else. By ensuring you have renters' insurance, landlords can rest easier
knowing you are financially and legally safe if an incident occurs on the property. It also adds
a layer of protection for them in case a lawsuit arises.
How can LegalShield help me as a tenant? Renting a home requires patience, understanding
between parties, and knowledge of the laws. Your provider law firm can review your renters'
insurance policy to ensure your needs are met.
Ask your provider law firm for advice and have them review your renters' insurance today. If you’re not already enrolled, consider doing so at your next enrollment opportunity.