5 Helpful Things To Know About Renter's Insurance

If you rent rather than own a home, you may not give much thought to insurance. Renter's insurance usually isn't required unless your particular landlord wants you to carry it. The good thing is this type of insurance is quite affordable since it covers your personal possessions and not the house or apartment you live in. Since claims are lower, the cost of insurance is lower too. Here are five helpful things to know about renter's insurance.

1. Renter's Insurance Costs Vary

Talk to an insurance agent to get the best rate for your insurance. You want your possessions to be covered, but you don't want to pay for more insurance than you need. The cost of renter's insurance varies according to the area you live in and the value of your possessions. If you live in a high-crime area, your insurance will probably be higher.

If you have a lot of valuable artwork and high-end furniture, you may need additional coverage, which could raise the costs of your policy. Plus, the amount of your deductible affects the cost of your monthly payments.

2. Renter's Coverage Protects Your Possessions

If your home is vandalized and your possessions are damaged, your insurance might pay to replace clothing, furniture, kitchen equipment, linens, electronics, and hobby equipment.

It helps if you take pictures of your home and make a list or inventory, so you know exactly what you have and the cost value for each possession. This also helps you choose the right amount of coverage when you take out your insurance. Keep in mind that you must pay your deductible first before the insurance payment kicks in.

3. Renter's Insurance May Pay for a Hotel Stay

If your apartment has a lot of damage from vandalism, a fire, or a bad storm, you may not be able to stay in your apartment safely. Your insurance might pay for your hotel room when this happens so you have a safe place to live until you can get back to your apartment.

You may need to pay first and receive reimbursement for your expenses later. Be sure to ask your agent how this type of coverage works so you know what to expect if you ever need to use it.

4. Liability Insurance Is Included

Liability insurance is important to have for both your car and home. If someone gets hurt and it's your fault, you'll probably have to pay for their medical bills. If someone is hurt in your apartment due to your pet, furniture that hasn't been maintained, or trip hazards, you might be required to pay their medical bills.

This could be a significant amount of money, and that might cause you financial distress if you don't have renter's insurance. Even if the possessions you have aren't valuable and you don't care about insuring them, renter's insurance is still worth having for the liability aspect in case someone gets hurt in your apartment or rental.

5. Assets That Are Not Covered

Just like traditional homeowner's insurance, floods, and earthquake damage are not usually included. Instead, these require a separate policy that's added to your standard renter's insurance policy. Talk to your agent about whether you need the additional coverage and how much it costs.

Keep in mind that your landlord carries insurance on your rental home or apartment. The landlord's insurance pays for damage to the structure of the building, so you don't have to worry about filing a claim for storm damage to the building. Renter's insurance only covers the possessions you own, and your landlord's policy pays for structural damage.

If you rent an apartment or home, call Mike Pierce Insurance for a quote on the cost of renter's insurance. We'll explain the type of coverage you need and help you find a policy that fits your budget whether you're a college student with only a few possessions or a professional with luxury furnishings.