According to CNBC, more people are renting now than at any other point in the past 50 years. In 2016, 36.6% of household heads rent their home. The rise in renting instead of home ownership comes from an increase in home prices, not enough for a down payment, owning a home inhibits moving, and large student loan debt. If renting your first home is a better option for you, you still have personal property that needs to be protected from fires, burglaries, or even lawsuits. That’s why homeowners get homeowners insurance, and renters, like you, should consider renter’s insurance.
What Does Renter’s Insurance Cover?
Renter’s insurance acts the same way homeowner’s insurance acts for homeowners. It will protect against losses on your personal property within the rented property. Below are a few examples of what will be covered.
Personal Possessions
Renter’s insurance will protect personal possessions including furniture, clothes, and food in case of theft, fire, or natural disasters. Most insurance policies will cover personal belongings located in your home, car, and even when you are on vacation. Additional coverage may be needed to cover the full value of expensive items such as jewelry or electronics.
Liability Protection
Liability coverage insures you against the risk of being sued or held legally liable for claims within the coverage of the policy. For example, if someone hurts themselves on your rental property, the renter’s insurance will protect you from any legal or compensatory damages. This also provides coverage to another’s property if you cause damage to it.
Additional Living Expenses
Most policies include additional living expenses coverage that can help cover the costs of other living arrangements when you are unable to live in your rental. Situations such as extensive maintenance, natural disasters, or pest fumigation can force you to leave the rental property and find temporary living arrangements. Not all insurance policies will cover this, so make sure to communicate with your insurer to go over the details of your policy.
Top Reasons You Need Renter’s Insurance
Here are the three top reasons why purchasing a renter’s policy is in your best interest when renting your first home.
- Safeguards You and Your Belongings: Renter’s insurance will help cover the cost of possessions that your landlord’s insurance won’t cover. No one can predict the future, so if a disaster were to happen, it is important that all belongings are financially protected.
- It’s Affordable: The average renter’s insurance policy in Massachusetts costs about $206 a year, according to ValuePenguin. Spending about $17 a month is far better than shelling out thousands if something goes wrong and you’re not covered. Most renter’s insurance policies cover up to about $25,000 in personal belongings and $100,000 of liability insurance.
- May Be Required: Usually, your landlord has the choice to make renter’s insurance a requirement in your lease or not. It is important to go over the details with your landlord.
If you decide renting your first home is a better option, put yourself at ease by ensuring you and all your possessions are safe by having a comprehensive renter’s insurance policy. We can help you obtain a policy to provide coverage for everything that matters to you. To learn more about renter’s insurance, contact us at TJ Woods Insurance.
