Due to the downturned economy, many families and individuals alike have chosen to rent over owning a home to save on monthly expenses.
Monthly rent is generally cheaper than a monthly mortgage payment, and you don’t have to worry about maintenance costs such as roof repairs, plumber visits, or lawncare with a rental property.
However, a monthly expense that most believe they can forgo when they rent over own is insurance.
Regardless of where you live, you should never forgo insurance even if you are only renting. Renters insurance covers the cost of all your possessions should you have to replace them while living in the home or apartment.
It can even cover the costs of items destroyed while being stored in a StorageMart self-storage facility which tend to be expensive to replace. Three main reasons every renter should possess renters insurance include:
If you were to own a home, you would buy homeowner’s insurance to cover the cost of the damage to your home and personal property in the case of a natural disaster.
If you are renting and a natural disaster such as a tornado, earthquake, or wild fire occurs, there is a good chance that your landlord’s insurance will not cover your possessions. To make sure that you are able to furnish a new place after such a disaster occurs, renters insurance is a must.
Most states require landlord’s to carry homeowner’s insurance for the properties they own, but not all of them do. Should the basement flood or an electrical fire occur, you could be out thousands of dollars in property because your landlord doesn’t have insurance. Don’t rely on your landlord to protect you and your possessions.
Look out for yourself and by a renter’s insurance policy even if you don’t believe you have that much “stuff.” Most of the items you have – including that hand-me-down furniture – would be expensive to replace with new items so make sure you acquire a policy that will cover it.
If someone enters your home and injures themselves by falling down the stair or slipping on the bathroom floor, you could be held liable for the medical costs incurred.
Most landlord’s insurance policies will cover what happens on the outside of the property you are renting, but they will not cover any accidents that occur within. To avoid being sued or being required to cover high medical bills, get renter’s insurance with a personal liability rider.
Every renter should have renters insurance to protect themselves and their possessions, and they shouldn’t be deterred by costs. Renters insurance is relatively cheap, generally not costing more than $15 a month for $30,000 worth, and when combined with your car insurance, can actually lower the cost of the premium to save you money overall.
Don’t put yourself at risk simply because you don’t own a home. Purchase a renter’s insurance policy to cover you and your possessions, and to give yourself a greater peace of mind.