Renting an apartment or home can create a very exciting and rewarding living experience, but it can also come with some unexpected costs. Enter renters insurance. To put it simply, renters insurance is a type of policy designed to protect tenants living in rental property from damage or loss due to a variety of perils. It can also protect you from liability if you or a guest cause an injury or damage an item in your home.
Renters insurance covers three main areas: liability, personal property and additional living expenses. The liability coverage protects you from financial responsibility for injury or damage you or your guests may cause to the property or another person’s property. Personal property coverage is used to replace items in your home that were damaged or lost due to fire, theft or other perils. Additional living expenses covers the cost of living elsewhere if your home is uninhabitable due to events such as a fire or flood.
Another important aspect of renters insurance is its affordability. The average cost of a renters policy is less than $20 a month and the amount of coverage you receive can easily outweigh the cost. On average, you will receive between $20,000 to $30,000 worth of personal property coverage and $100,000 in liability coverage for less than $20 a month.
One of the most important reasons to purchase a renters policy is the peace of mind it can provide. Replacing items that were damaged or stolen can be costly, and if you don’t have renters insurance, you will be left to cover the costs out of pocket. If you are ever faced with a potential liability situation that involves injury or damage, you’ll be thankful for the financial protection of your renters policy.
In short, renters insurance offers an affordable way to protect your home and your belongings, as well as provide liability protection in the event of an accident. The peace of mind it can offer is well worth the cost of the policy and in some cases, it may even be included as a part of your agreement with the landlord. Research your local area to compare quotes and find the best policy for you.