Why is it important for a renter to get renters insurance?
Renters insurance helps protect you and your belongings if the unexpected happens. A landlord’s insurance policy covers the building, but not your personal things. If you rent an apartment, house, etc., you need renters insurance.
What type of damage does renters insurance cover?
A renter’s insurance policy provides low cost coverage for you and your belongings for things like:
- Smoke damage
- Water damage
- Visitor injuries
Renters insurance does not provide coverage on the building or other structures.
The most important part of renters insurance is the protection it provides for personal property. Many renters believe that they are covered under their landlords’ policies. However, that is true only when the landlord is liable for damage. For example, if bad wiring causes a fire and damages a tenant’s property, the tenant may be able to collect money from the landlord. Renters insurance is relatively inexpensive and provides protection similar to homeowners insurance.
What items are covered by renters insurance?
- Electronics and appliances (television, computer, etc.)
- Furniture and clothing
- Extra expenses if property is uninhabitable due to a covered loss
- Accidental damage to someone else’s property
- Medical expenses and/or legal fees if someone is injured on your property
- If you have a jewelry collection of items like engagement rings, wedding bands, diamond bracelets, etc., you may also need special coverage for these along with your renters insurance policy.
How much renters insurance do I need?
The amount of coverage needed primarily depends on two factors:
How much personal property do you have? Taking a home inventory can help you determine the combined worth of all your stuff. For example, if your belongings total Rs 10 Lacs in value, then you need at least that much in personal property coverage.
What is your net worth? If you’re liable for someone else’s injuries or property damage, you need enough liability coverage to cover what you have to lose. For instance, if your assets add up to Rs 10 Lacs, you need at least that much in liability coverage.
Why do landlords require renters insurance?
While landlords likely have an insurance policy in place to cover damage to their rental property, renters insurance protects against damage to the renter’s belongings — which means less liability for landlords if the tenant’s stuff is damaged or a tenant causes damage to another tenant’s unit. Moreover, if there is a fire or significant damage to the rental, causing the renter to live elsewhere while the repairs are made, and additional living expense coverage on a renter’s insurance policy can pay for temporary housing.
Some landlords may require you to get a renter’s insurance policy before you can move in.