Is It a Good Idea to Get Renter’s Insurance?

The insurance sector is witnessing the widespread increase in premiums for various insurance coverages, such as property insurance, auto insurance, and more. But what if we told you that certain key segments have remained more or less consistent while still being powerful in enhancing your coverage options? 

Renter’s insurance is one such policy. It is required for renters in 75% of cases by their landlords. However, only about 18% of insured renters have seen a premium increase in over a year.

But is it even worth it?

Renter’s insurance is sometimes mandated by landlords because homeowner property insurance cannot cover certain damages in certain circumstances. Moreover, it is beneficial for renters who do not want to face a financial burden in case of litigation.

The Basic Guide to Renter’s Insurance

Let us start with a fundamental understanding of what renter’s insurance is.

Renter’s insurance is required for anyone who has rented a building (or part of it) for personal or commercial purposes. It becomes necessary to the likelihood of various threats or accidents transpiring. These can include theft, vandalism, property damage, liability insurance, and, in some cases, weather-related damage. The type of renter’s insurance you choose can help you in either of the two situations — first, it can cover the replacement of damaged items, and second, it can cover repair work for the damaged portion.

Apart from the reasons stated above, the renter’s insurance proves excellent if you must temporarily vacate your home due to damage or other concerns. You can pay for this temporary stay if you have adequate insurance coverage. In the event of a third party being injured at your rented apartment/building while visiting the property or being your neighbor, this insurance will assist you in covering their medical bills or other legal costs that may arise as a result of judicial liability.

As a general guide, renter’s insurance premiums typically range between $12 and $14 per month, depending on a few factors. For example, if you use a rented building or apartment to run your small business, this cost may rise. In other cases, you may require additional coverage for business-related reasons like business interruption, worker’s compensation, etc.

A renter’s insurance policy protects your basic household items; however, if you have valuables or a vehicle that you use for personal/commercial purposes, a separate policy may be required. 

So, is getting renter’s insurance a good idea? Absolutely! “All things considered, there’s a significant bang for the buck in these policies. So, it’s definitely worth taking,” says Chris Gonzalez, owner of Gonzalez Insurance.

Why Is Renter’s Insurance Important To Opt For?

Liability Coverage

Renting a property may be simple, but keeping it in good condition and staying out of trouble is not. Assume your dog bites a neighbor or your faulty plumbing causes water leakage in the apartment beneath you. Heavy liabilities imply higher costs. 

People who are injured on your property may seek compensation or, in the worst-case scenario, sue you and take you to court for mental or physical damage. If you cause damage to the rented apartment, the landlord may demand repair work as well. 

To cover all of these costs, it is critical to obtain renter’s insurance, which protects you against such liability-inducing expenses.

Personal Belongings Coverage

Even if you live in a rented apartment and are not concerned about the property’s upkeep in general, you may want to reconsider saving your personal belongings. Any apartment is vulnerable to theft or vandalism, and renter’s insurance can help when this occurs. 

Some types of insurance policies include coverage for items stolen from your vehicle. However, valuable items such as collectibles or artwork are not covered by renter’s insurance and must be protected separately. You can contact us to learn more about what is and what isn’t covered.

Required by Landlords

A property is an asset, and if a landlord does not want it to become a liability, they will require you to obtain proper renter’s insurance. This could be because landlords expect renters to be more cautious around the house and want them to understand the consequences of any damage that occurs. 

By requiring renters to purchase renter’s insurance, landlords ensure that the individual/property is covered for any damage caused by natural catastrophe or human error, keeping both the renter and the landlord out of debt.

Wrapping Up

The number of people moving to the United States has been increasing year after year, and thus, the renter’s community has grown significantly. Renter’s insurance proves immensely viable in such an ecosystem.

Gonzalez Insurance can help you renew your renter’s insurance or craft a new policy as and when needed. We can also assist you in analyzing all of the risks associated with your rented apartment through a thorough risk assessment and help in selecting the right coverage at the lowest possible premium with no deductibles. To learn more about premiums, coverage, and more, contact us today.