If you found this blog post, you’ve probably been asked by your landlord to purchase renter’s insurance.
Why Another Cost?
Actually, it can help you a lot.
Buying renter’s insurance is very affordable (starts at about $20/month) and is certainly in your best interest.
If your personal items get damaged or stolen, rental insurance can cover the cost to replace them.*
What is Renters Insurance and Why Do Apartments Ask For It?
Generally speaking, most renters’ insurance covers your (tenant’s) personal belongings and even some liability coverage in case of third-party injuries that might occur.
Apartments ask for renters’ insurance because they know how important and valuable renter’s insurance is and can be to you (tenant). For example, if something happens to your personal belongings or someone gets injured in the apartment while you occupy it, you may be liable.
Landlords are interested in avoiding confrontation.
Moreover, Landlords do not carry insurance for your personal belongings or for injuries to third parties (your neighbors or guests) that occurred during your tenancy at their community and for which you are found to be solely responsible.
Helping you avoid a loss, and the pain of that loss is in every Landlord’s best interest if he or she cares about customer satisfaction.
What Happens If I Don’t Have Renters Insurance?
First, renter’s insurance may be a requirement to the community where you live (check your lease). In this case, if you don’t have renters’ insurance, you could be breaching your lease.
Requirement notwithstanding, if you don’t have renter’s insurance, you could be responsible for the financial burden of losses which could easily be $10,000+.
How Much is Renters Insurance?
Renters insurance is extremely affordable and can be as little as just $20 per month in many cases. You may not embrace the idea in the beginning, but if you suffer a covered loss, renter’s insurance is extremely valuable, and something you will be thrilled you had.
Losses occur, and when they do, the cost associated with the loss is generally far more than the premium paid.
You’ll want to protect yourself and your household financials as much as possible. Purchasing renter’s insurance can do just that.
Talk to a licensed insurance agent to get more information on types of renters’ insurance available, costs, and other things to consider. This is not meant to be financial advice or any advice regarding insurance, but rather just an article to get you started on thinking about the importance of renter’s insurance and why landlords may require it.
Try not to think of it as another expense, but rather “insurance” in case of unforeseen covered losses.
*must be a covered loss (i.e. not all losses are covered), must have active coverage, and details on reimbursement depend on policy specifics, but there can be great coverage