6 Things You Didn’t Know About Renters Insurance

You know you need homeowners insurance if you own a home. But what if you are someone who rents, insurance coverage isn’t necessary, right? Many people think renters insurance will only help to pay for damages to their belongings, and the value of those belongings is often underestimated.

The fact is it would be a costly expense if you were forced to replace everything you own suddenly. A renters policy can offer a great deal of protection at an affordable price. Consider these six tips that you may not have known about renters insurance to decide if it is right for you. 

1. Renters Insurance Can Protect You If a Guest Sues You 

Beyond coverage to protect belongings, a renters insurance policy offers another equally important coverage – liability insurance for renters. If a claim was made against you or you were sued, tenants liability insurance could help cover the cost of the damages (including property damage and bodily injury) as well as legal fees. 

2. Your Landlord’s Policy Would Not Provide Protection for Your Belongings

It is a common misconception to think that a landlord insurance policy would also provide some insurance for tenants; however, this is not necessarily the case. For example, if there was a fire in your apartment that caused significant damage, the landlord policy would provide coverage for the structure of the dwelling, but it would not cover any damage to your personal property inside. This is where a renters policy would come in handy.    

3. A Renters Policy May Protect Your Belongings Outside of Your Apartment 

You might think that your belongings would only be covered inside the walls of your apartment; however, your renters insurance also travels with you. For example, if your laptop was stolen from your car, then it would still be covered under your renters insurance policy.    

4. You Can Add Extra Coverage to Protect Expensive Belongings 

Your renters insurance policy will protect you up to a certain limit. Still, if you have expensive items such as jewelry or fine art that you want to insure, you can purchase additional insurance.    

5. Renters Insurance Offers Different Options for Reimbursement

When you purchase renters insurance coverage, you have the option between two different types of reimbursement. These options include replacement cost and actual cash value. Consider the example of a laptop being stolen to understand the difference. In the case of a policy with replacement cost reimbursement, you would be covered to buy a brand new similar laptop. In the case of actual cash value, you would be reimbursed for the value of your original laptop minus depreciation, so you may have to pay some money out of pocket to replace your computer with a new one. 

6. There Are Ways to Save on Your Renters Coverage

If you are interested in investing in a renters policy but are concerned about the cost, you should know that there are some ways to save. For example, increasing the deductible on renters insurance policies can decrease the premiums. The deductible is the amount of money that you will have to pay out of pocket if you choose to file a claim. Additional ways to save include investing in a security system, paying your premiums in advance, and having multiple policies with one insurance company.

Looking for high-quality renters coverage? You’re in the right place! InsureOne can help you find the insurance you need. Get a free renters insurance quote online, over the phone, or at one of our offices near you.