Most home owners have home owner’s insurance to protect their home in the event of an unexpected emergency. However, it is estimated that less than half of all renters have renter’s insurance. There are many reasons that renters skip on getting insurance, most which may be based on incorrect assumptions. If you are a renter that is currently uninsured here are several reasons why you may want to invest in insurance.
Protects you when Robbed
The fact is that anyone can be robbed regardless of being a home owner or a renter. When someone burglarizes your home they often walk out with some of the most expensive items in it, such as jewelry and electronics. While the sentimental value of these items can never be replaced, your renter’s insurance can replace the monetary value of your missing items. Just as with any other type of insurance, make sure that you understand how much you are covered for different scenarios that might arise and what kind of documentation you must provide.
Protects you if your Building is Destroyed
Many renters are under the incorrect assumption that if your building were to catch fire or suffer damage, your apartment building’s insurance will cover your losses. While you may indeed receive some type of compensation if your apartment building is fully or partially destroyed, there is also a chance that you will receive nothing at all. To avoid the expense of having to replenish all of your belongings from scratch it is wise to invest in renter’s insurance.
Protects you when Someone is Injured in your Apartment
While you may not think that any of your friends would pursue legal action if they were to get hurt or injured in your rental that may not be the case. For example, if a friend slips and falls down your stairs and breaks their leg, they may choose to pursue litigation for damages. Even if their intention is not malicious, their medical bills can be quite costly. Your renter’s insurance will also cover you if you have a handyman or other contracted worker who injures themselves while working in your rental.
Covers Home Office Equipment
More and more people are working from home these days. If you work from home you may rely on your electronics, office equipment, and supplies to support your livelihood. While the average renter’s insurance policy places a cap on home office equipment, larger polices can be purchased for individuals who work from home.
It can often be Packaged with your other Insurance Policies
While you can seek out companies that specialize solely in renter’s insurance, it may be more cost effective to package it with your car or life insurance. Renter’s insurance policies cost around $300 annually for around $50,000 worth of property. While you may feel like that $300 could be better utilized elsewhere, it only accounts for $25 a month which is a small price to pay if you have to replace valuable items in your rental.
Some renters don’t have insurance simply because they have never fully considered the value of their material possessions. As you continue to save and invest in items for your home, you will want to protect your investments with quality renter’s insurance.