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The Importance of Renter's Insurance for Your Family's Security

by Maggie Bloom Freelance Writer

The Importance of Renter's Insurance for Your Family's Security

People who are renting may not consider something like renter's insurance, but they should. Renter's insurance serves a great purpose in protecting the value of your belongings in cases where they can be damaged or destroyed.

While you may not consider your belongings to be valuable, covering them with insurance will do a lot to help you start over if there is a disaster.

Things Covered by Renter's Insurance

Most people know renter's insurance will cover things like a fire, a windstorm, or theft, but there are other things this type of insurance covers that may be more common than those perils.

Renter's insurance will also cover:

  • Vandalism

  • Smoke damage

  • Falling objects like trees

  • Damage caused by the weight of ice, sleet or snow

  • Water or steam damage from an appliance, plumbing, air conditioning, heating or fire sprinkler system

  • Damage from a sudden electrical surge

Renter's insurance typically won't cover things like flood, earthquake, mudslide, or landslide damage. They also don't cover what is called neglect of property, which is you failing to protect your property at the time of loss, intentional destruction, or actions by the government.

Other Little Known Benefits

Besides the obvious benefit of protecting your personal property, renter's insurance has other benefits most people don't know anything about. These can save you thousands if you find yourself in these situations.

Renters insurance will pay for you to stay in a hotel after a disaster, an injured guest's medical expenses, damages caused to others by actions of your family, and legal costs if you are sued.

This could be beneficial if someone is injured in your apartment or condo and you face legal action because of it. Those who host parties or have friends over regularly would greatly benefit from renter's insurance because of the liability alone. You can't predict what will happen when a group of people get together and having a policy to cover you in case it turns into a legal case will give you peace of mind.


It also covers things like dog bites, things you've borrowed, or rented. This can be really helpful if you are a social person with pets and are renting things like flatscreen televisions or living room furniture.

It even covers replacing your belongings if you are on a trip. For instance, it will cover your belonging if someone at an airport steals your luggage or if something is stolen out of a rental car. Those who travel regularly for business or pleasure will find this an incredible benefit of getting renter's insurance.

How Much is Covered?

Policies are different by company and by state but California renters insurance policies state what amount is covered with a maximum amount. The maximum amount depends on the deductible and the type of coverage you buy. There are policies in a variety of price ranges with some being incredibly affordable.

Deductibles

You will be required to be responsible for the first part of the amount of the claim before the insurance company pays the rest. Typically, the higher the deductible the lower you pay for the policy. However, that could hurt you when you have a claim.

For instance, you may have a $5,000 deductible and your claim is for $4,000. You will be responsible for replacing everything because you haven't met your deductible. You could have a $500 deductible, in which case the insurance company would cover the rest.

The deductible will depend largely on the value of your belongings.

How Do You Decide on Renter's Insurance?

The best thing to do is to determine how much coverage you need before you insurance shop. Figure how what it would cost to replace all your belongings and add a liability that would protect you if you were sued. Then, take that number and shop several companies for quotes. It is also a good idea to call the company where you currently buy your car insurance or life insurance because they may offer you a good customer discount.

Once you have quotes, you can decide which company and policy are right for you. Choosing between a monthly payment and higher deductible can be a balancing act, but you can weigh your risk based on your location and lifestyle.



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About Maggie Bloom Advanced   Freelance Writer

9 connections, 2 recommendations, 113 honor points.
Joined APSense since, June 23rd, 2020, From Orem, United States.

Created on Jun 24th 2020 11:07. Viewed 433 times.

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