When you rent a home or apartment rather than buying it, you’re essentially living on someone else’s property. The differences between renting and owning are many, and it’s important to know what kind of agreement you are entering into when you agree to rent a house or apartment. Basically, you are agreeing to rent the space under terms set by the owner of the property, and in return you have a place to live. Most often, you will also have the luxury of any necessary maintenance and repairs being taken care of by the landlord, which is one of the benefits of renting as opposed to buying.
However, despite the fact that the property you are moving into will be covered under your landlord’s homeowner’s insurance, your belongings and anything else you own inside of the house or apartment will not be. That’s why it’s so important for renters to invest in renters insurance to protect their belongings from any unforeseen circumstances that may arise.
Difference between Landlord’s Homeowners Insurance and Renters Insurance
An example of the difference between what is normally covered under your landlord’s homeowners insurance policy and what is not, can be demonstrated by the following scenario: Say there was a fire in your house or apartment and the fire destroyed everything in your bedroom before you were able to put it out.
Under the landlord’s homeowners policy, the damage to the room would be covered, including fixing and replacing all walls, floors, windows, etc. However, the damage to anything inside of the room that belonged to you would not be covered. That means your bed, clothes, electronics, or whatever else was lost in the fire would be lost.
However, if you had renters insurance, these items would be covered and you would be able to have them replaced by the insurance company.
What can Renters Insurance protect you from?
In addition to the above scenario, renters insurance can protect you from a variety of unfortunate incidents including:
- Break-ins and burglaries
- Natural disasters like tornadoes and hurricanes
- Personal injury that occurs in your home
Advantages of Renters Insurance
To avoid losing your belongings in any of the above scenarios, you can get renters insurance for a low monthly cost and protect yourself and your possessions in the process. Some renters insurance policies can cost as little as $10 a month, and the best part is that it can be easily added to your existing car insurance policy or health care coverage. For such a low price, it’s certainly worth it to make sure that you are fully covered in the event that something unfortunate does happen while you are renting. Plus, you can’t really put a price on the peace of mind that you will gain knowing that you are fully covered.
While some landlords require that their tenants get a renters insurance policy upon signing the lease agreement, it’s not always mandatory, so make sure you find out if that stipulation exists when you go to rent. If it’s not, it’s still a good idea to invest in it anyway, and you will be extremely glad that you did if anything does happen down the road.