How Much Renters Insurance Do I Need?
According to a study by Pew research, approximately 36.6% of people rent their homes. With rental rates on the rise, getting renters insurance might be a good idea. While having renters’ insurance is not required if you rent your home, it can make a difference if an accident or natural disaster occurs. It can be confusing to think about how much renters insurance you really need, but these tips might help you out.
Take Inventory of Your Things
Your landlord will have insurance to cover the dwelling you are living in, so luckily you don’t need to worry about that. However, your landlord’s coverage will not cover your personal belongings. Only your own renter’s insurance policy will help protect your personal things.
Taking inventory of your belongings is a good first step. It should include all your personal possessions, the price of your possessions when you bought them and now, how old they are, and any other important information. You may also want to keep receipts for valuable items and expensive purchases. You should put your completed inventory in a safe place outside of your home just in case something happens!
Renters insurance doesn’t just cover your personal items, it also helps with liability coverage. For instance, if someone gets hurt in your home, then renter’s insurance can help with that claim against you. Additionally, renters’ insurance can be useful if you or someone in your family causes damage to another person’s property. When these liability issues arise, renter’s insurance can help with legal fees, or settlement costs. When you are buying coverage, make sure that you get enough. By talking to your agent about your needs, they can help you get the right amount of coverage to suit your life.
After disaster strikes, you could find yourself needing to relocate. For example, if the building you are living in catches on fire, it could be unsafe, and you may need to temporarily move out. Sometimes, renters’ insurance can help with those expenses. Like with all other insurance policies, renters insurance does have a limit, so make sure that you have enough coverage!
Renter’s Insurance Doesn’t Cover Everything
Renter’s insurance can be beneficial in the context of liability and personal possessions, but it does not cover everything. Just like homeowner’s insurance, renter’s insurance will not protect you from flood or earthquake damage. For these perils, you will need a separate insurance policy. And in other cases, your renters’ insurance may only provide limited coverage. Make sure that when you talk to your agent, you discuss the exclusions of your policy. Every policy can differ, so it’s important to go over the details of your policy.
Though renters’ insurance is not legally required, it is a nice safety net to have. You can’t predict when something unexpected is going to happen. But, if it does, then having insurance can be extremely helpful. When deciding on what policy to get, it’s a good idea to chat with an agent. They can help you get the right coverage for your rented home. And, they can help you figure out if the coverage you already have is too much or too little. They’re there to answer any additional questions you have as well.