Do You Need Insurance for Your Rental Property?
Many people think that if you’re just renting a piece of property, you don’t really need to purchase insurance for it. While this might seem like a plausible argument, the reality is that having insurance for your rental is a better idea than leaving it uncovered. Unfortunately, neglecting to buy insurance for your rental can cause more problems than might be foreseeable at the time you sign your lease. Most renters don’t think about insurance because they don’t see the rental property as their own. However, while this may be true in some ways, the rental property is very much theirs as well as their landlord’s. Ownership is not the only issue, as there are plenty of other factors renters must be aware of when it comes to the safety and coverage of their rental.
Renters Insurance
For those who rent a home or apartment, it is important to purchase coverage for their belongings. Just because the space they inhabit is not their own, it still acts as the place where most of their belongings reside. Contrary to what some people think, a rental needs insurance just like a home that is owned needs insurance. Renters insurance, therefore, is similar to home insurance as it protects the renter from situations that can happen to any home. These include theft, water damage, fire, and other disasters that your landlord’s insurance policy may not cover. The best part about renters insurance is that is gives coverage to only the limits you select, meaning it covers your specified options and situations so you aren’t paying for more than you need or want. Some other situations that could be covered by your renters insurance if you so choose are:
- Personal Liability: If someone who lives in the home is hurt—whether within the home or away from it—their injuries are covered by your plan.
- Personal Property: The personal belongings that fill your rental property to be covered along with the property itself. These belongings include everything from furniture and clothing to electronics and computer equipment.
- Damage: If your apartment or home is damaged by a covered loss, the damage will also be covered so you don’t have to pay out of your own pocket.
Situations That Require a Plan
Whether you own or rent your living space, plenty of disastrous situations can befall it. While most people don’t want to imagine the worst that could happen to their home or apartment, it is important to give each situation some thought in order to plan ahead. Your belongings, keepsakes, and other valuables can be lost, damaged, or even stolen no matter where you keep them. This makes renters insurance a great option for your financial safety. Some situations can happen at any time without warning, which makes it all the more crucial to have proper coverage for all of your personal belongings. Some situations that are generally covered by most renters insurance policies include the following:
- Water leakage, flooding, and overflow
- Weather damage—from building collapse to outside damages
- Freezing of necessary appliances and systems such as the plumbing, air conditioning, and more
- Theft
- Smoke Damage
- Fire
Even when renting a home or an apartment, it is important to have the proper coverage for yourself and your possessions. Your landlord’s insurance usually won’t cover your valuables, which means you must take these matters into your own hands. Covering yourself with a renters insurance policy can ensure financial protection and liability protection so you know each of your bases are covered.
If you choose to cover your rental with a renters insurance policy, you must make sure to take detailed inventory of all your belongings and valuables before looking at different policies. Once you have taken account of your home comforts and necessities, you can talk with your insurance agent to get a quote and find the best policy for you and your budget.