When do you need renters insurance
Renters insurance is often considered to be useless, and many tenants do quite well without it.
That is because those who rent dwelling believe there isn’t any risk for them as the property belongs to the landlord and it’s his responsibility to take care of housing.
However, this opinion is mistaken due to the fact that any person brings his/her own possessions, which commonly include household appliances and furniture, to the rented place.
In case of some accident or disaster this movable property is most likely to be damaged, but no compensation is supposed as the insurance of the homeowner doesn’t cover the damage of a tenant.
Thus, it’s worth thinking about renters insurance if you want to be on the safe side and avoid the risk of losing your things on condition of some accident.
Cases When Renters Insurance Helps
Some renters are a bit suspicious about the type of insurance as being not aware of how it can help them.
So, when do you need renters insurance?
Here are the cases when the insurance can be paid out:
- Natural disasters which damage your belongings – hurricane, windstorm, hail, volcanic eruption, etc.
- Fire or another accident which does the same, including sudden breakage of plumbing, heating or other household systems.
- Burglary and vandalism.
- Additional living expenses appearing in case the current apartment is impossible to live in because of serious damages.
- Liability coverage which covers unexpected expenses if someone gets injured at your place.
There are also other cases when renters insurance is rather helpful, but you need to check it with the insurance agency which provides it.
Renters Insurance Variability
As soon as you decide to buy insurance, you are to choose the way how it would cover the cost of property damaged.
There are two types of policies:
- Actual cash value. Your insurance company will pay the amount of money that your stuff is currently worth after being used by you. It’s clear that some items may significantly lose in price, but some will still maintain their price, which might be pretty beneficial. In addition, this type of renters insurance is cheaper, so it’s a good option for those strongly doubting to have belongings damaged, but don’t want to worry in this case.
- Replacement cost coverage. This policy is more expensive, but it involves full repayment of the initial price of the items you want to insure. So you will be able to replace the lost stuff with the new ones costing the same. It’s a brilliant decision for those who own expensive furniture and technical equipment.
Apart from the type of policy, renters insurance varies in size.
That is the more expensive things you have got and might need to be covered with insurance, the more expensive and complicated insurance policy you are to choose.
When Insurance Might Be Useless
However, renters insurance doesn’t cover the damage on some special conditions, which are the following:
- Flood or earthquake – as a rule, you are to purchase a separate policy to get insured against these types of natural disasters;
- Intentional damage or loss of one’s own property;
- Neglecting your own things which led to their being damaged or lost;
- Actions of the government;
- War and nuclear hazard.
Anyway, when buying an insurance policy, thoroughly read it to find out on what conditions you will get coverage and which cases are excluded from the insurance list.
Should I Spend Money on Renters Insurance?
If you want to be sure that a sudden occasion won’t make you earn money to buy all the property from the very beginning, then you obviously should spend a comparably small sum to buy the insurance.
Renters insurance can cover the damage or loss of clothes, jewelry, electronic equipment, bicycles, furniture, books, etc.
So, the question “When do you need renters insurance?” can be answered as “Whenever you want to feel protected”.