While owning a home is still a very big part of the American dream, more people in today’s world are renting rather than buying. The reasons for this are numerous, such as wanting to save up enough money before purchasing a home, liking the flexibility to pick up and move quickly if needed, and other various reasons. However, one thing we’ve discovered along the way is that while over 95 percent of homeowners have insurance, less than 40 percent of renters choose to purchase insurance to protect themselves and their belongings. With home ownership in the U.S. at a 51-year low, we can’t stress enough the importance of having renters insurance. If you’re still on the fence and wondering why this type of insurance is important, here are seven benefits associated with renters insurance.
Additional Living Expenses Coverage
One thing we have discovered over the years here in Redding and other areas is that when people are displaced from their rental property due to a natural disaster, fire, or other related reason, they often scramble to find another place to live. But for those who have renters insurance, this becomes a far easier process. Since renters insurance covers what are known as “additional living expenses,” it will provide reimbursement for hotel costs or renting another apartment.
Medical Expenses for Guests
If a guest is injured while at your apartment, renters insurance will pay for the medical expenses up to the policy’s limit. To be safe, we recommend buying a policy that has a limit of between $1,000-$5,000, which is a typical range for these policies.
Damage Caused by Children
Even if you have the most careful kids in your apartment, we know accidents are bound to happen. This is another advantage of having renters insurance since it offers liability insurance that covers various injuries or property damage caused by children or other family members. So if your child accidentally breaks a neighbor’s rare and expensive antiques, renters insurance will cover the costs.
Legal Costs If You Get Sued
In our opinion, we feel as if this is one of the most important benefits renters insurance provides. This kicks in if someone is injured at your apartment, or if you accidentally hurt someone are sued. If you have a policy, it will pay legal costs and court awards up to the policy’s limit. While you can choose the amount of liability insurance when you buy a policy, most limits on these policies begin at $100,000.
A common problem in many households, a dog bite issue can become a legal nightmare if you aren’t protected by insurance. Therefore, we highly recommend all renters in Redding purchase renters insurance that offers coverage in the event your dog bites someone at your home or off your property. However, when purchasing a policy, be sure to carefully check the fine print, since some policies limit coverage or even exclude this aspect of coverage.
Coverage of Possessions
Even if you don’t feel the stuff you own is worth very much, we still believe you should purchase renters insurance. After all, even if you have to replace your wardrobe, some electronics, or furniture, the costs can add up very quickly. However, if you purchase renters insurance, you’ll have coverage for anything that is considered to be “in your possession.” By that, the policy means not only any property you own but also any you have borrowed or rented.
While most people realize renters insurance covers things actually inside their home, we’ve found the vast majority of renters don’t realize these policies also provide what is known as “off-premises” coverage. With this aspect of a policy, personal belongings that are not in your home are covered to a certain extent, which is usually limited to a percentage of total coverage for personal belongings, which is often 10 percent. Therefore, if you leave something in your car and a thief later breaks into your vehicle and steals it, or if you are staying in a hotel and have your luggage or other items stolen, you’ll have insurance coverage already in place.
How to Shop for Coverage
Once you decide to purchase renters insurance, we have a few suggestions you should follow. First, decide how much coverage you need before examining policies. Next, purchase enough insurance to cover your belongings, and also make sure your liability limit is high enough to protect your property and savings in the event you get sued. Finally, make sure you get quotes from multiple insurance companies. By doing so, you may find you’ll be eligible for a substantial discount, especially if you purchase renters insurance through the same company with whom you have car insurance. By thinking things through, you’ll have peace of mind while renting in Redding.