5 Reasons You Should Buy Renter's Insurance

Prospect Leasing - Renter's Insurance

Do you live in an apartment in Lancaster and feel unsure about investing in Renter’s Insurance? Well, you’re not alone: only 46% of renters nationwide buy insurance to protect themselves and their property.

Many renters feel they don’t need insurance because they assume their landlord’s insurance has them covered, they underestimate the value of their possessions, or they may feel renter’s insurance is simply too expensive.

However, these assumptions may not be entirely correct! Here are 5 reasons why you should look into buying renter’s insurance to protect yourself and your belongings.

 

Protect Your Investments

Think about all of the stuff you own: your clothing, electronics, furniture, etc. You’d probably feel a bit lost without it and you’ve probably invested quite a bit of money into these items to add comfort and enjoyment to your life. Unfortunately, in the event of a fire, burglary, burst pipe, or other apartment disaster, you won’t be reimbursed for your things being damaged or lost without your own renter’s insurance policy!

Many renters mistakenly assume the building owner’s insurance will cover their possessions, but owners’ policies typically only cover damage to the structure itself. Renters are out of luck in the event something catastrophic occurs in their living space. An average renter’s insurance policy will cover up to $30,000 in personal items, which should be more than enough to cover most people.

 

Liability Protection

Renters aren’t required by law to obtain insurance, but some landlords and property managers may require tenants have coverage as part of their lease. In addition to covering your possessions, renter’s insurance provides you with liability coverage should you inadvertently cause damage or injury to other tenants in your building.

Accidents can and do happen, whether it be fires, smoke damage or overflowing sinks causing water damage to downstairs neighbors. It’s always best to have liability coverage in the event that you need to pay for repairs or even worse – medical or legal bills. Most renter’s insurance policies provide coverage for up to $100,000 in liability.

 

Loss of Use

One great feature of renter’s insurance many people don’t know about is the “Loss of Use” coverage. Loss of Use, sometimes called “Relocation Expense” coverage, covers your living expenses if your apartment becomes uninhabitable due to damage.

For example, if you’re temporarily forced to relocate due to smoke damage in your apartment from a fire, Loss of Use coverage will cover the cost of renting a hotel room, food and other expenses incurred during this time. With the average cost of a hotel in 2019 nearing $130/day, this coverage could mean the difference between sleeping with a roof over your head or sleeping in your car for extended periods of time.

 

Affordability

Many renters cite “cost” as a deciding factor in why they forgo purchasing insurance. The good news is, renter’s insurance is not very expensive. Rental coverage can usually be bundled with your auto insurance for a reduced rate and purchased for around $10-$15 per month. That’s protection and peace of mind for about the same price as a pizza delivery!

People often underestimate the value of their belongings and the true cost of replacing everything in the event of a catastrophe. We recommend you do a full, room-by-room inventory of your apartment to estimate the actual value of everything you own and how much it would cost you to replace everything.

 

Roommates

Are you covered if one of your roommates has renter’s insurance? Well, you’re only covered if your name is listed on their policy or if you and your roommate are immediate family members, otherwise you may not be protected. Luckily, adding roommates to a policy won’t change the premium, although you may want to increase your coverage to make sure all possessions are insured.