If you are a renter, do you have renter’s insurance? We’ve got the top reasons to get renter’s insurance.
Despite being inexpensive, a good number of tenants do not have renter’s insurance. Whereas 95% of homeowners have insurance for their home. The average price of renter’s insurance is between $15 and $30 monthly or $120 and $300 yearly.
This covers property damage up to $25,000 and liability protection up to $100,000. A landlord’s insurance only protects the landlord’s building and the contents that they own. It does not cover the tenant’s properties.
Most tenants do not consider having a renter’s insurance because of certain misconceptions such as:
- Landlord insurance protects the tenants
- Renter’s insurance is expensive
- Tenants are not liable if someone gets hurt in a rented property
- If you don’t own much, you don’t need insurance
But the reality is that:
- The landlord’s insurance does not protect the tenants
- Renter’s insurance is inexpensive
- Tenants can be sued if someone gets hurt in a rental property
- Even when you feel you don’t own much, the few items in your house could be worth thousands of dollars
Renters Insurance is worth buying.
Below Dawson Management shares the top reasons why you should get a renter’s insurance.
1. For the protection of your personal properties.
Since the landlord’s insurance covers only the building, landlord’s belongings and liability, the primary reason that tenants should get renter’s insurance is for the protection of their personal belongings.
Renter’s insurance will reimburse you for fire and lightening, theft, riots, vandalism, explosion, damage by aircraft, damage by vehicles belonging to others, smoke damage, short-circuit damage, damage from electrical appliances.
Also, it compensates for freezing of plumbing, falling objects, damage from ice, snow, sleet, volcanic eruptions, windstorm, and hail.
Some good renter’s insurance also covers medical bills, personal liability, and the cost of temporary living expenses. If you own costly jewelry, you can decide to insure them separately. Also, you can take additional policy if you are living in an area prone to flooding.
2. Some landlords require it for the leasing.
A lot of landlords are requesting prospective tenants to have renter’s insurance before getting keys to the property. This is because a renter’s insurance mitigates the inherent risk for the landlord. No landlord wants to be held responsible for the actions of their tenants.
Also, a short term relocation arrangement can be expensive for the landlord if the property becomes uninhabitable. A renter’s insurance will help pay for the tenant’s temporary relocation, thereby taking the burden off the landlord.
Lastly, tenants that cannot afford to pay at least $15 monthly for renter’s insurance may find it difficult to pay rents. This will help to prevent problematic tenants from renting the property.
3. To obtain personal injury protection.
Preventing injuries in your rental property is impossible. A standard renter’s insurance policy includes liability coverage that offers financial protection from lawsuits. The bills covered include legal fees, liability charges, and medication bills.
Tenants with certain types of pets pay higher amounts for their insurance or may even be denied coverage for injuries from their pets. Some breeds of dogs that may not be covered include pit bulls, terriers, Presa canarios, Rottweiler, German Shepherd, Akitas, and Doberman Pinschers.
4. It is surprisingly affordable.
Unlike other types of insurance, standard renter’s insurance is affordable. The cheapest is between $120 and $140 yearly, and the most expensive is between $220 and $240 annually.
Even when you sign up for additional coverage, the yearly premium is not costly. The benefits from renter’s insurance far exceeds the loss from annual fees.
5. It covers your properties when you are away from home.
Renter’s insurance can cover your belongings outside the home. However, this depends on your policy. There is an “off-premises theft” clause that covers for properties stolen elsewhere.
Some policies have limitations. For instance, such coverage may be limited to theft within your community or 100 feet away from your house. Make sure you read your policy thoroughly to note the limitations.
In a nutshell: Top Reasons to Get Renter’s Insurance
A good number of tenants do not have renter’s insurance, despite that fact that it is inexpensive. The average price of renter’s insurance is between $15 and $30 monthly or $120 and $300 yearly. This covers property damage up to $25,000 and liability protection up to $100,000.
Most tenants do not consider having a renter’s insurance because of certain misconceptions such as:
Landlord’s insurance protects the tenants, renter’s insurance is expensive, tenants are not liable if someone gets hurt in a rented property. Also, there is a misconception that if you don’t own much, you don’t need insurance.
The truth is that landlord’s insurance does not protect the tenants, renter’s insurance is inexpensive, tenants can be sued if someone gets hurt in a rental property, and even when you feel you don’t own much, the few items in your house could be worth thousands of dollars.
Below are the top reasons to get renter’s insurance:
- For the protection of your personal properties
- Some landlords require it for the leasing
- To obtain personal injury protection
- It is surprisingly affordable
- It covers your properties when you are away from home
Special thanks to Dawson Property Management for writing this article. If you live in Virginia and need Renters Insurance, we can help! Contact us here to get your quote started.