Renters insurance is an important investment for those who lease their properties, just as essential as any other type of insurance.
There are many reasons why renters decide not to invest in renters insurance, sometimes thinking renters insurance is too expensive, or that they don’t have anything worth insuring. Or maybe they’re under the misconception that their stuff is covered by their landlord’s homeowners insurance.
For some reason, some people have it in their minds that getting renters insurance just isn’t worth it. We are here to set the record straight and fill you in on why getting renters insurance for apartments and homes is just as important as having any other type of insurance, such as a health, car, or homeowners policy.
Continue scrolling to learn more below.
What Is Renters Insurance?
First off, let’s make sure we’re all on the same page and dive into what renters insurance is. Renters insurance is a policy that covers a renter’s personal items and offers liability coverage when you live in a structure that you do not own. These policies are also called tenants insurance, or an HO-4 policy.
This kind of insurance is similar to homeowners insurance policies because it covers many of the same types of scenarios and events, like theft or fire damage. However, it differs from a standard homeowners policy because it only covers your belongings, not the actual structure itself, making it much more affordable.
Three Reasons Why Renters Insurance Is Just as Essential as Any Other Insurance
Insurance is one of the wisest investments a person can make. There are all types of insurance coverage out there, all designed to cover different assets.
For example, car insurance covers damage to your vehicle and protects you financially if you are liable for someone else’s injuries or damages. Homeowners insurance covers your belongings in the event of a destructive event, offers liability coverage, and covers the house structure itself. Business insurance protects businesses in liability cases and more.
Renters insurance for apartments and homes is no different, and investing in this kind of insurance is just as essential as investing in car, business, and health insurance. Below, you’ll find three reasons why renters insurance is essential:
- Protect Your Personal Belongings: One of the biggest reasons people invest in insurance is to protect their personal belongings. People who rent their place of residence need protection for their possessions.
If a worst-case scenario happened, what would become of your belongings? How would you replace your most expensive electronics, such as your laptop, smartphone, TV, smartwatch, or gaming systems? What about the hundreds, possibly thousands of dollars worth of clothes, shoes, and accessories you have? And the worth of your furniture — couches, chairs, desks, tables, dressers, bed frames, mattresses, and more? Don’t forget the cost of your bicycle, pots and pans, and other belongings.
It’s a smart move to take inventory of your belongings. What would it cost to replace these items? It is not unlikely that the total cost would exceed $10,000. All of these personal belongings, and so much more, can be covered and protected with a renters insurance policy.
- Protects You in Liability-Related Situations: Having guests and loved ones come to visit is exciting, but what happens if a visitor gets hurt at your place and you aren’t able to cover their medical bills? What if they sued you? How would you cover lawyer fees, court costs, and other related expenses?
Consider the following possibilities that could happen to any renter:
- Your dog bit someone
- A guest tripped and fell inside your apartment
- You had some friends over, and things got wild
Any of these situations could cause an enormous amount of stress and could be enough to destroy anyone financially. But with a renters insurance policy, renters can rest easy knowing they have the coverage necessary to protect themselves and their assets up to the stated liability limit outlined in their policy.
- Offers Coverage for Additional Living Expenses: The unexpected can happen at any time, and when it does, it pays to be prepared. Like homeowners’ insurance, renters insurance can help cover costs in the event you become displaced and your rental property is uninhabitable.
If your rental apartment or home is damaged and is unlivable while repairs are being made, standard renters insurance policies include coverage for this exact situation. The additional expenses you will incur during that time are covered by your insurance company.
For example, if your monthly rent is $1,100, but you cannot live in your rental for the next two months while it’s being repaired, then your insurance policy would pay out the additional living expenses beyond $1,100 each month that you incur while eating out, staying in a hotel, and more.
How Much Is Renters Insurance?
You’re likely paying more in monthly bills than you would like, right? If so, the idea of adding on yet another monthly expense probably isn’t a very appealing option to you. So, it is easy to dismiss the idea of renters insurance, thinking you don’t have anything worth insuring in the first place. Well, maybe you thought that before you read that last section.
So, how much is renters insurance? Tenants insurance policies can range quite a bit depending on the coverage or policy you get, but don’t be surprised when you find options for less than a few cups of coffee. How much is renters insurance? It’s totally affordable!
How Do I Know if I Need Renters Insurance?
Many property management companies and landlords require their tenants to have tenants insurance before they will lease out their property. To limit the risk that their renters will sue them for personal property damages or liability costs, landlords will sometimes make having renters insurance mandatory.
In many other situations, though, the decision to invest in tenants insurance is left up to the tenant. However, it is crucial for renters to thoroughly understand the risks associated with a lack of insurance. Lots of things are a gamble for tenants to choose not to protect themselves with a renters insurance policy.
Say the apartment you are renting is broken into and your personal belongings are taken, or maybe a fire destroys your possessions, and you do not have renters insurance. Guess what? You, the renter, are left paying the cost to replace all those items. Moreover, if the rental property becomes unlivable, you will have to pay all expenses for other living arrangements.
A renters insurance policy will protect renters from these types of unfortunate but entirely possible events. So, whether or not you invest in renter insurance is completely up to you. But because you’re asking us, we believe that all renters should protect themselves, their belongings, and their finances by incising in a tenants insurance policy.
If you have personal belongings you want to be protected, want help covering the cost of additional living expenses, and want coverage in a liability lawsuit, it’s best to invest in renters insurance for apartments and homes.
Looking for Renters Insurance? The Experts at Bear River Mutual Insurance Can Help!
If you are looking to invest in renters insurance or another type of insurance, such as business, homeowners, or car, the professionals at Bear River Mutual are here to help.
The unavoidable truth about life is that it is full of the unexpected, and many unforeseen situations and events can arise. While we cannot predict when these untimely circumstances will occur, there are things we can do to prepare ourselves and our loved ones for them.
Having the right insurance policy in place can protect you and your family when these unexpected events arise. When you work with Bear River Mutual Insurance, our team makes sure you and your needs are taken care of. We help you get the peace of mind you and your loved ones deserve.
Our team is dedicated to finding the perfect balance of value and protection for each of our clients, and with us, you are sure to find reasonable rates. Our goal is to find the best coverage and rates possible. We are here to help you find the best solution to protect you, your family, and your assets when the unexpected happens.
Our business has always been guided by strong values, and putting you and your loved ones first ensures the highest-quality service. If you already have an insurance policy, our trusted team can provide you with a free, comparative review to decide how much money you could save if you make the switch.
As a local company located in northern Utah, we are aware of the unique needs of home, car, and business owners, as well as the renters in the area. We have three convenient locations: Orem, Provo, and Salt Lake City, and we serve those living in surrounding cities.
Contact the experienced team at Bear River Mutual Insurance to get started today!