This One Mistake Cost Renters Thousands of Dollars

Listen guys, this is a topic we take very serious at Resident Therapy.  We cannot stress enough to  our readers how important it is as a renter to obtain renter's insurance.  We have seen renters lose everything especially when it came to natural disasters which your landlord has no control over and is not responsible for. 

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As much as your landlord try to be there to offer you support, they cannot cover your personal items if you lose it in  a hurricane or tornado, fire, leaky pipe or from burglary.  It is your responsibility to obtain renters insurance to cover the cost of your personal property…period. 

Our hearts goes out to our readers who have experienced any type of major personal property losses while renting.  You do have some control over replacing the stuff that matters to you with renters insurance.  Not having renters insurance is like showing up at a gun fight without a gun…get protected! 

If you are on the fence about whether or not you should get renter's insurance, let's discuss the facts.  We encourage you to keep reading our article below if you are still unsure of the importance of renters insurance.  We break it down for you.

What Is Renters Insurance?

Renter's Insurance refers to a policy that covers damage to a tenant’s property. It also covers the losses that the renter incurs because of these damages. Some property owners include having renter’s insurance as a condition for leasing their property. Usually, this condition is part of the lease agreement for medium and large-scale rental properties.

Regrettably, only 40% of American renters have rental insurance coverage. At the same time, 65% of the households headed by millennials are in a rental home. What would happen to these households if a disaster occurred in their rented house? Remember, a recent report revealed that 40% of American adults could not handle a $400 emergency without borrowing money or selling something.  

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The solution to this problem is renter’s insurance. It would help you cover damages worth thousands of dollars if they occurred because you were living in a rental home. For example, paying $10 to $15 every month entitles you to $30,000 in property damage and $100,000 in liability settlements. These figures may vary depending on state laws, liability limits, and personal property values.

Now you can see how cost-effective renter’s insurance is. Unfortunately, the uptake of this policy among Americans is inadequate. This inadequacy results from the fact that many people do not know the benefits that it offers them. For example, do you know some of the reasons why you should take up this insurance cover? Well, here they are.

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Reasons for Getting Renter’s Insurance

• Dealing with Unforeseen Circumstances

Renter’s insurance helps you mitigate the impact of an unexpected event. Some of these events include burglaries, windstorms, and fires. For example, did you know that fires in homes represented 75% of all structure fires in the US from 2011 to 2015? These fires led to $6.7 billion in direct damages. Renter’s insurance would help you recover from fires and other unforeseen events.

• Fulfilling Your Obligation to Others

Tenants have a responsibility to the people who live around them. For example, paying for repairs to your neighbor’s property is the correct thing to do if you damaged it. These costs can be too high depending on the value of the property. Fortunately, renter’s insurance would help you fulfill your obligation to your neighbor.

• Handling Unique Situations

Homes are highly personalized environments including rented ones. For example, the most valuable thing in your house could be an heirloom. Perhaps your home is more likely to suffer from a particular tragedy than it is others. You can discuss these unique circumstances with your insurance agents. They will offer you customized renter’s insurance to take care of your needs.

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Types of Renter’s Insurance

• Personal Property

This policy covers your belongings including kitchen appliances, furniture, home entertainment systems, and jewelry. The insurer will compensate you if a burglar steals them. Payments for these losses are also necessary if fires, power surges, or if plumbing leaks damage them among other situations. However, the insurer will not pay for flood or earthquake damage.

Interestingly, most insurers place a limit on payments for the loss of specific items such as jewelry and electronics. For example, the maximum compensation for the loss of a jewelry item may be $1,500. The exact value of such limits depends on your selected package, but these limits exist in all of them. Consult your insurer today to determine the limitations that are applicable in your case.

• Loss of Use

Daily activities such as sleeping, cooking, and resting continue even when tragic events occur. Sadly, carrying them out at home might be impossible because the environment there could be chaotic. Consequently, seeking accommodation elsewhere is your only choice. Who will pay for your upkeep?

This policy helps you pay for a hotel room and food among other expenses. In other words, it compensates you for losing the use of your home by ensuring that you continue with your daily activities. Your life proceeds as it was before the tragedy and it does so without borrowing money from your friends or relatives.

• Liability

Negligent actions may cause bodily injury to the people living around you. They can lead to property damage as well. You are morally and legally responsible for injuries or damages that arise from these actions. Do you have enough money to pay for their medical expenses? Can you buy them new items if you damaged the ones that they have? Many people do not.

Remember, a study on savings habits in America revealed that 61% of Americans do not have $1,000 in savings to cover emergencies. Well, this liability insurance policy helps you if you do not have enough cash to cover your liabilities. You can also keep your savings intact if you have this cover. Instead, let the insurance company pay for these costs.

• Additional Coverage

Visitors can come into your house, fall, and injure themselves. Who will pay for their medical expenses? A burglar may steal your personal belongings and then use your credit card information to defraud others. Who will compensate these people? Moreover, imagine that you borrowed a friend’s laptop, and then a leaking pipe destroyed it. Who will pay for it?

Additional coverage caters to such scenarios. In other words, it deals with situations that do not involve personal property, loss of use, or negligent actions. Talk to your insurer today so that you can customize the terms of your renter’s insurance contract to reflect these additional situations. Remember, paying for such damages is unnecessary when a policy cover can handle them for you.

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Make Your List and Take Photos

Your claim will be unsuccessful if you lack sufficient evidence to support it. For example, do you have a list of the items that are in your home? Make this list if you do not have one. Include the household object and the value. Support your figures with receipts and then keep records of things that you purchased after signing the insurance contract.

Do not stop at that. Instead, take photos to compliment your list. Make copies of that list and those pictures. Update these documents as often as possible. Keep your insurance company informed as well. These steps will facilitate the success of your claim, and as such, you will benefit from renter’s insurance.

Landlords Who Offers Resident Insurance - What You Should Know

Some landlords will offer their own renter's insurance for as low as $3 up to around $15 per month.  What you need to know is that in most cases this insurance covers only liability.  It usually does not cover your personal property.  Since most apartment landlords require liability insurance this could be a good solution.

However, please take the time to read your agreement and ask a ton of questions before signing up for this type of coverage.  If something were to happen, the landlord's property will be covered and not your personal property. If you elect to participate in your landlord's insurance coverage plan, be sure you obtain personal property insurance in addition to the landlord's insurance.  Now you know!  ~Tip from Celeste

Renters insurance is confusing enough without all the jargon and fine print. Think electronics exclusions, jewelry limits and other loopholes galore for your valuables. Jetty makes it ridiculously easy to protect the valuable items you care about. All in about two clicks. Start here with a free quote in under 10 seconds.