Insurance Basics: Everything You Need to Know

4 Reasons Why You Need A Renters Insurance

Often, tenants overlook the need for having a renter's insurance. Some assume the landlord's property insurance covers their personal property in case of loss or damage. However, this is not true; it's your responsibility as a tenant to obtain a personal insurance cover. Renters insurance protects your personal property from theft or damage. 

Although renters insurance is considered optional, here are five reasons why you should obtain it.

It Offers Liability Coverage on Guest Injuries 

Accidents happen when you least expect them, even while at home. Even though your apartment may seem safe and secure, this does not mean you and your guests are safe from accidents. For example, a wet floor could result in serious slip and fall injuries. If this happens, you may spend a lot of money covering medical bills. To be safe from such risks, obtain renters insurance. The policy protects your personal property and injuries that occur on your property.

Covers Additional Living Expenses

Property damage can be extensive, leaving your apartment uninhabitable. Repairing the damages may take some time, and of course, you will require a temporary place to stay. Unfortunately, living in a hotel can be expensive. Fortunately, most renter insurance companies arrange temporary housing in case of a disaster. Therefore, investing in a renter's insurance may save you huge amounts of cash and give you peace of mind.

Protects Your Households From Damage and Theft

The main reason people obtain renters insurance is to safeguard their personal property from theft and damages. Most policies also cover households from power interruptions and other damages you do not have control over. A standard renter's policy cover risks like:

  •       Damage from vehicles

  •       Explosion

  •       Fire and lighting

  •       Theft and vandalism

  •        Hailstorms

  •        Smoke

  •        Falling objects

However, a standard renters policy does not cater to damages as a result of natural events such as earthquakes and floods. Also, the policy does not cater to damages due to negligence.

Talk to your renter's insurance service provider about what is covered and what is not covered to avoid disappointment.

Your Landlord Demands you Have It

Various landlords require their tenants to obtain a renter's insurance policy. The policy is meant to protect landlords from the risk of a lawsuit if someone is injured on their property. As a tenant, the policy covers liability if someone gets injured due to the property owner's negligence. 

Renters insurance covers your personal belongings and any injuries that may occur within your home. Before obtaining renter's insurance cover, talk to your insurance company about coverage limits, discounts, and deductibles. 

For additional information, contact a company like Woodmansee Insurance Inc.