When looking for a place to live, some may forget to consider the importance of renters insurance. For homeowners who have a mortgage, many times homeowners insurance is a requirement by the mortgage company. Even if a homeowner does not have a mortgage, homeowners insurance is great protection against unforeseen events. Similarly for tenants, renters insurance is coverage that protects them from losses in their rental property due to various covered perils. Whether required by landlords or not, renters insurance is good for tenants and is important protection for them.
Three Tenant Benefits
It is important for tenants to understand that the property insurance landlords have on their rental property covers the physical structure of the building. It does not cover the tenant’s belongings. Renters insurance can provide tenants with financial protection in the event of a covered loss. It can help replace or repair lost or damaged personal property in a covered incident up to the policy’s coverage limits.
Renters insurance is good for tenants because it can also provide liability coverage in case someone injures themselves in the rental property. For example, if the tenant’s friend trips over the laundry basket and injures themselves, the tenant’s renters insurance can help cover their friend’s medical expenses.
Another benefit of renters insurance is that it can cover additional living expenses if the rental property becomes uninhabitable due to a covered loss. For example, if a water leak forces the tenant to shelter in a hotel during repairs, the cost of the hotel, meals, and other related expenses while the tenant is temporarily displaced can be covered under the renters insurance policy.
Renters Insurance is Affordable
The good news is that renters insurance can be affordable. Depending on things like property location and coverage limits, the average cost of renters insurance is typically between $15 and $30 per month.