What is renter’s insurance? Why do you need renter’s Insurance?

What is renter’s insurance? Renter’s insurance is a type of insurance that protects a tenant’s belongings and any expenses in the case of an accident. Renter’s insurance is your personal protection in the case of fire, theft, and loss of property. Rather than home insurance which covers the property and everything in it, renters need to purchase renter’s insurance to protect their personal items, as in the case of fire or theft, their home insurance doesn’t cover a tenant’s belongings.

Many renters believe that taking out renters insurance is unnecessary or too expensive, but it is a very important way to save yourself great pain if anything were to go wrong. Here are some common misconceptions about renter’s insurance, and reasons why you need renter’s insurance.

Myth #1: Very Little stuff Needs insurance coverage

If you think you do not have enough stuff to warrant a renters insurance policy then we suggests you go around your residence, room by room, and take full inventory of your belongings before making a decision. Most people usually only think of the big-ticket items, like electronics, but if you really think about it, it’s so much more in that. For example, in your kitchen, it’s not only the appliances, but the towels, dishes, utensils and food, too. We find that the average renter in a two-bedroom apartment has about $30,000 worth of stuff.

Along with evaluating how much your belongings cost, it’s important to consider how much you personally value those items. In some situations, how much you care about your stuff may override cost in your decision to take out a renters insurance policy.

Myth #2: Your landlord will cover property damages

Occasionally, a landlord may partner with an insurance company to offer renters insurance to tenants, but more frequently, the insurance policies that landlords hold for their properties only protect the building itself. Even if the landlord owns appliances or other items within your rented home, he or she is not responsible for damages they inflict on your personal property. If you wanted coverage for lost expense, the landlord would not responsible for it. That would be part of renters insurance.

Myth #3: Renters insurance only covers your personal belongings

Accidents, such as a flood in your apartment, may damage other tenants’ property and can be costly. Renters insurance can protect you from these situations and help cover those unexpected costs. For example, if your bathtub overflows and water seeps into the apartment below, damaging your neighbor’s furniture or rug, your renter’s policy will cover the damage up to your liability limits.

This liability protection can cover medical or legal expenses associated with your home. If you are entertaining at your home and, say, someone trips over a loose rug or injures his or herself in your apartment in some way, could you afford to pay the potential medical expenses associated with that, but in the event of a lawsuit, could you pay the legal expenses as well? A typical renters policy will cover that full range of risks that any renter could be exposed to.

Myth #4: Renters insurance is too expensive

Unlike car insurance or a typical home owners insurance policy, a renters insurance plan is not a large additional monthly cost. You are probably looking at about an additional $185 a year. For less than $20 a month, all your personal property is protected. Policy premiums can vary between individuals, providers and location, but as a whole, renters can expect to pay about 50 cents per day for a renters insurance policy.

However, even though renters insurance is less expensive than homeowners insurance, it could still become expensive if consumers are not careful, regardless of the policy type. You have to shop around. It is recommended that you call your state’s insurance department and ask them to recommend the top five renters insurance providers in your state. Then give those places a call to get some quotes before making a final decision.

MHA offers hundreds of high quality apartments for any stage of life, whether you’re moving for school, a new job, or downsizing. MHA Apartments have amazing amenities in every building, from fitness centres to games rooms to outdoor community seating areas. You can search our variety of apartments here! Contact us at each specific building for more information, we’d love to hear from you!