If you are renting out your home and believe that insurance is only for homeowners, you may want to reconsider your decision. The truth is, renters can benefit from insurance just as much as a landlord. There are a few situations in which your homeowner's insurance may be beneficial to you, but most of the time you will need your own. Here are some of the reasons why not purchasing tenant insurance is a risky decision.
# 1 – Owner's insurance only covers the structure
Suppose for a moment that you live in an apartment building owned by a large corporation. Then assume the apartment building catches fire and your apartment is a total loss. The company that owns the building – the owner, if you will – has insurance, but that insurance only covers the structure. This means that the company will be reimbursed for repairing or rebuilding the structure, but your personal effects destroyed in the fire are not covered.
Also, if you have a friend in your house and that friend is injured while in your apartment, you could be responsible for paying the damages. This is true even if the injury was caused by something that is the responsibility of the owner, such as a leaking water heater or a shorted appliance.
# 2 – Your property is precious
Everything you own – including things like jewelry, appliances, electronics, and other valuables – is your responsibility. Your landlord's insurance policy won't cover these things, so it's up to you to purchase this coverage. Imagine losing everything you own to a fire, tornado, or other disaster, without having any way to recoup those losses. This is exactly what could happen if you don't purchase insurance.
The best way to buy a policy that covers your needs is to have all of your possessions appraised and create a portfolio. It's even better if you can take photos of particularly valuable items, which can include expensive electronics, furniture, and antiques. Then you can decide on the coverage you need and choose a policy that suits your budget.
# 3 – Renter's insurance is inexpensive
If you delay buying a tenant insurance policy because you think you can't afford it, you might be surprised at how cheap some of these policies really are. Most renters pay between $ 20 and $ 30 per month for their coverage based on national averages. This is because unlike homeowner's insurance policies which must cover everything including the structure itself and any liability for injury, your landlord's policy already covers the structure, and his or her policy may also cover the structure itself. injuries occurring in your apartment building outside your apartment. You will only have to cover your belongings and some potential injuries that might occur inside your apartment.
Tenant's insurance is designed to cover anything that your landlord's insurance does not cover, including anything you own and any injuries that may occur inside your rented space. It & # 39; s incredibly inexpensive, so it & # 39; s a fantastic investment that no renter should ever be without.