5 reasons renters’ insurance is worth it

When we rent an apartment or a House, we overlook a lot of things thinking that the landlord will take care of it, for example, plumbing, water heater not working properly, and most important of all, renters insurance. According to the latest data, only 41% of renters have rental insurance, whereas 95% of homeowners have homeowners’ insurance. Most people assume that the landlords' policy will protect them, but nothing could be farther from the truth.

1. It's freaking cheap: Renters' insurance is relatively affordable, with an average cost between $15 to $30 a month, according to NAIC. It will, however, depend on a few factors like where you live, how much coverage, type of coverage, and amount of deductible.

2. Look around; your stuff might be worth something: Once you start adding up belongings, you will be surprised how much they are worth. Few clothes, desktop computer, TV, laptop, smartwatch, kitchen equipment; all these can add up to a good amount. We do not realize that our stuff is worth much more than we imagined. So, in case of theft, fire, or vandalism, you stand to lose quite a bit. Hence, get yourself adequately covered.

3. It covers a lot more than you think: Renters insurance surprisingly covers you for a lot of perils, including

- damage caused by an aircraft

- damage caused by vehicles

- explosion

- object falling on your rental property

- Lightning or Fire

- riots, vandalism, mischief, or any kind of civil unrest

- Roof collapse due to snow, ice, or sleet

- Even volcanic eruptions

- Hail, thunderstorms, or windstorms

- water damage from the source like water heaters, plumbing, or a sprinkler system

- theft or smoke

As you can see renters policy can give you peace of mind, but it does not cover floods and earthquakes; for that, you need a separate policy.

4. Liability liability liability: If someone gets injured or gets burnt in a barbecue in your rented house or apartment, you should not be left with a hole in your pocket. Liability coverage in a typical renters policy is at least $100,000. Legal expenses, Court judgments are also covered.

5. Your friend while traveling: Renters insurance comes with you when you travel, and it covers your personal belongings. So covered losses are taken care of like theft. Make sure to understand what are other covered losses.

6. Bonus reason- living expenses- in case your apartment becomes uninhabitable due to any covered peril, your policy might have a profession to cover your living expenses, food, and other things.