Renter’s insurance is an often overlooked but crucial way to protect your possessions. This form of insurance protects belongings against various types of damage and is even required by many landlords.
Why Is Renter’s Insurance Necessary?
Renting tenants understand that their landlords are responsible for the buildings and appliances they are renting. While these landlords will have insurance plans that cover damage to the dwelling itself, this protection does not extend to a tenant’s possessions. In the case of fire, theft, or other damage, your personal belongings (including clothing, furniture, and appliances) will not be covered unless you have renter’s insurance.
What Does Renter’s Insurance Cover?
Renter’s insurance policies vary as much as other forms of insurance, but in general, they will cover forms of damage that are out of the renter’s control. This includes things such as power surges, fire, theft, vandalism, or water damage. Depending on the insurance plan, most packages will not cover damage that is caused by mudslides, nuclear hazards, flood water, or earthquakes. If these events are a source of concern, you may be able to speak with an insurance agent about getting an independent policy that allows for this type of insurance claim. Additionally, some items may only be covered up to a certain limit depending on the insurance company, such as $2,500 for electronics and $1,500 for jewelry.
Many landlords will require tenants to have a certain amount of liability coverage, commonly a minimum of $100,000. As with homeowner’s insurance, in the case of damage, renters can work with agents to determine the value of their belongings and how expansive their policy should be.
Because a lack of renter’s insurance can cost thousands in the long run, it’s important to obtain it immediately when beginning a new lease. For more information about how to find the right plan for your needs, call Darryl Murphy Insurance at 225-698-6789 for a free renter’s insurance quote.