Posted by As a tenant or someone who wants to rent a home or apartment, you should always find a way to protect yourself and your properties in case something decides to go south someday. To achieve this, you should consider renter insurance.
A good number of people don’t realize the importance of renters insurance until it’s too late, but the truth is that this insurance offers a lot of benefits that make it well worth the investment. So, in this article, we will provide you with a list of the benefits of renters insurance that you should know about.
But before that, there’s a need for us to get acquainted with what this insurance policy is all about. So without much ado, let’s explore what this insurance is really about.
What is Renters Insurance?
Renters insurance is a type of insurance policy that’s designed for people who rent their homes. It helps to protect your belongings, finances, and other additional expenses in the event of a loss that involves your covered items.
Normally, this insurance is not required by law, and it’s highly recommended for anyone who rents an apartment, house, or other property.
Types of Renters Insurance
The following are the types of renters insurance:
Overview of the Types of Renters Insurance
Standard Policy
A standard renters insurance policy is the most common type of this policy, and it’s a good choice for most people.
This is because it covers all the major risks that you could face as a renter, such as damage to your belongings, liability, additional living expenses, etc.
It also includes a deductible. This is the amount you’ll have to pay out of your pocket before your insurance coverage kicks in.
Named Peril Policy
This policy is more limited than standard policies because they only cover the specific risks that are named in the policy.
For example, a named peril policy might only cover fire, wind, and hail damage, but not theft or water damage. This policy is also less expensive than standard policies, but they may not provide enough coverage for your needs.
They’re typically only recommended for people who have very specific risks that they want to cover.
Open Peril Policy
An open peril policy, also known as an all-risk policy, covers all risks that aren’t specifically excluded from the policy. This is the most comprehensive type of renters insurance, and it’s also the most expensive.
The main advantage of an open peril policy is that it covers a wide range of risks, hence, you won’t have to worry about whether a specific risk is covered.
How Much Does Renters Insurance Cost?
On average, renters insurance costs an average of $173 a year for a policy with $15,000 of personal property coverage.
The average cost of renters insurance for a $30,000 policy is $227 annually, and a $50,000 policy costs an average of $305 annually.
Table Showing the Average Renters Insurance Cost From Different Insurers
| S/N | Company | Average Cost Per Year for $15,000 in Renters Insurance | Average Cost Per Year for $30,000 in Renters Insurance | Average Cost Per Year for $50,000 in Renters Insurance |
|---|---|---|---|---|
| 1 | Allstate | $106 | $149 | $210 |
| 2 | Chubb | $114 | $178 | $276 |
| 3 | State Farm | $122 | $160 | $209 |
| 4 | Nationwide | $126 | $165 | $216 |
| 5 | Country Financial | $150 | $178 | $230 |
| 6 | Average | $173 | $227 | $305 |
Benefits of Renters Insurance
The following are the benefits of renters insurance:
- It protects your belongings in case of damage or loss
- It provides liability protection
- It covers your additional living expenses
- It covers your belongings
- It may include discounts for bundling with other types of insurance
- It’s affordable and easy to obtain
- It’s customizable
- It can provide peace of mind
- It may include loss of use coverage
- It may include identity theft coverage.
Overview of the Benefits of Renters Insurance
1. It Protects Your Belongings in Case of Damage or Loss
This is one of the main benefits of renters insurance. If your belongings are damaged or destroyed in a covered event, such as a fire, theft, or vandalism, then your policy can help you replace them or pay for repairs.
It’s important to have an accurate inventory of your belongings, so you know what’s covered and what’s not.
Most policies have coverage limits, so it’s also important to make sure you have enough coverage to replace your belongings if needed.
2. It Provides Liability Protection
This insurance provides financial protection if someone is injured in your home or if you accidentally damage someone else’s property.
Let’s say that a guest slips and falls in your home, your renters insurance can help cover their medical bills and legal fees if they sue you.
If you accidentally break someone’s expensive vase, your policy can help pay to replace it. Liability protection is an important part of being a responsible renter, and it can give you peace of mind knowing that you’re covered if something goes wrong.
3. It Covers Your Additional Living Expenses
If your home becomes uninhabitable due to a covered event, such as a fire, your renters insurance policy can help cover the costs of temporary housing.
This can include the cost of a hotel room, meals, and other expenses while you’re displaced from your home.
It’s important to check your policy to see what’s covered and how much coverage you have.
4. It Covers Your Belonging
This coverage is especially important for college students who live in a dorm or apartment, as their belongings may be at risk when they’re away from home.
It’s important to understand the limits of your policy, as there may be restrictions on what’s covered and how much is covered.
5. It May Include Discounts for Bundling With Other Types of Insurance
Many insurance companies offer discounts when you bundle your renters insurance with other types of insurance, such as auto insurance or home insurance.
Bundling your policies with the same company can often save you money on your overall premiums. It’s also a good way to streamline your insurance and have everything in one place. When you’re shopping for renters insurance, be sure to ask about any available discounts and see if you can save money by bundling.
6. It’s Affordable and Easy to Obtain
Compared to other types of insurance, renters insurance is relatively inexpensive. On average, a renters insurance policy can cost as little as $15 to $30 per month.
In addition, renters insurance is easy to obtain, as most companies offer policies online or over the phone.
You can also get a quote and purchase a policy in just a few minutes. There’s no need for a home inspection or other time-consuming processes.
7. It’s Customizable
When you purchase a policy, you can choose the coverage limits and deductibles that work best for you. You can also add optional coverages, such as flood insurance or identity theft protection.
This means you can tailor your policy to fit your specific needs and budget. You don’t have to accept a one-size-fits-all policy. Instead, you can work with your insurance company to create a policy that’s perfect for you.
8. It Can Provide Peace of Mind
One of the most important benefits of renters insurance is the peace of mind that it provides. Knowing that your belongings are protected in case of an emergency can give you a sense of security.
Also, renters insurance can provide financial protection in the event of a disaster. If your belongings are damaged or destroyed, your renters’ insurance policy can help you replace them.
This can help you avoid financial hardship and get your life back on track.
9. It May Include Loss of Use Coverage
This coverage can help pay for your expenses if you’re displaced from your home due to a covered loss.
For example, if your apartment is damaged by a fire, loss of use coverage can help pay for a hotel room, meals, and other expenses while your apartment is being repaired.
10. It May include Identity Theft Coverage
Some renters insurance policies include identity theft coverage as an optional coverage.
Identity theft is a growing problem, and this coverage can help you recover if your identity is stolen. It can also help pay for costs associated with restoring your identity and repairing any damage to your credit.
In addition, some policies may also include fraud monitoring services to help you detect and prevent identity theft.
FAQs on Benefits of Renters Insurance
Why do I need renters insurance if I rent?
Renters insurance is important because it can help you recover financially if something happens to your belongings or if you're sued. Without renters insurance, you would have to pay out of pocket to replace your belongings or pay for legal fees.
What is renters insurance and what does it cover?
Renters insurance is a type of insurance policy that covers your belongings and provides liability protection. It can help pay to replace your belongings if they're damaged or destroyed, and it can also provide financial protection if you're sued.
How much does renters insurance cost?
The cost of renters insurance can vary depending on several factors, including your location, the value of your belongings, and the amount of coverage you choose. Generally, a renters insurance policy can cost anywhere from $15 to $50 per month.
Can I customize my renters insurance policy?
Most insurance companies allow you to customize your renters insurance policy to meet your specific needs. You can choose the amount of coverage you need for your personal belongings, and you can also add optional coverages, such as identity theft protection or water backup coverage. You can also choose your deductible amount, which is the amount you'll have to pay out of pocket before your insurance coverage kicks in. Customizing your policy can help you get the coverage you need at a price you can afford.
What is a deductible and how does it work?
A deductible is the amount you'll have to pay out of pocket before your insurance policy will cover any claims. For example, if you have a $500 deductible and your personal belongings are damaged in a fire, you'll have to pay the first $500 of the claim before your insurance policy will pay for the rest. Generally, the higher your deductible, the lower your premium will be. It's important to choose a deductible that you can afford to pay if you need to file a claim.
We Also Recommend:
- How Much Does Commercial Truck Insurance Cost?
- 20 Best Affordable Car Insurance For New Drivers Under 25
- Best Health Insurance Companies For Your Family
- Top 10 Benefits of Health Insurance Explained
- Top 20 Benefits of Insurance To Business, Individuals and Society.
Conclusion
Renters insurance is an affordable way to protect your belongings and also have peace of mind. It’s easy to customize a policy to meet your specific needs and budget. And while it’s not required by law, it’s highly recommended.
If you rent a home or apartment, it’s worth considering getting a renters insurance policy. It could save you a lot of money and hassle in the event of a disaster.