Apartment living has its benefits. There is no mortgage to worry about or property taxes to pay. Add in the automatic maintenance and other amenities, and renting can be an attractive and affordable way to put a roof over your head. However, that does not mean there are no responsibilities that come with your space. Renters insurance helps pick up the tab when something bad happens to your personal belongings or to someone visiting your rental.
There are many myths surrounding renter’s insurance. Perhaps you avoided it in the past because you thought it was too expensive. Maybe you never purchased coverage because you assumed you did not have anything worth insuring. You may have even believed that your landlord’s insurance would cover your belongings. The truth is, everyone who pays rent can benefit from insurance, and fortunately, coverage is very affordable.
Imagine coming home to find that your neighbor’s apartment caught on fire. While nothing in your apartment burned, it did suffer tremendous smoke damage, ruining your clothes, furniture, rugs and curtains. Not only will you need to replace most of your belongings, but you might also need a temporary place to live while your apartment is being restored or until you can sign a new lease.
Even if you do not think you own much, you may be surprised to find that the cost of new furniture, electronics, a new wardrobe and an extended hotel stay can add up to several thousand dollars all at once. That does not take into account other valuables, such as jewelry, fine art, and heirlooms. You might not be capable of paying the cost yourself, but you are capable of purchasing insurance that will.
Renters Insurance Coverage Types
Your landlord’s insurance typically covers the building and structure of your apartment. Everything else falls squarely on your shoulders. Renters insurance offers a variety of protections, including:
Liability protects you from a lawsuit if you are held liable for another person becoming injured while visiting your residence. If a friend burns their hand on your stove or breaks an arm after tripping over a bike on your patio, liability can help pay the bill.
The value of your personal belongings and the cost to replace them can add up quickly. Renters insurance can pay these expenses if your belongings are stolen or damaged due to a covered event. Burglary, fire, and burst pipes are just a few examples of problems you could face while living in an apartment.
Renters insurance is designed for affordability. Rates are largely dependent upon the types of coverage you choose, amount of coverage you need, as well as the deductible you select. Be sure to speak with your agent about the amount of coverage that is right for you, as well as any discounts you may qualify for. For example, discounts may be available to renters who install a home security system in their apartments. Lower rates may also be available for those who bundle their renter’s insurance with another type of coverage, such as an auto insurance policy.