Why Renters Need Their Own Insurance Policy

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When you’re renting a home, you have to cover all bases, including your personal belongings and damages following a fire or other disaster. Also called tenant insurancerenters insurance affords you protection against theft and loss.

This type of insurance prevents you from having to rely on your landlord to bail you out when something goes awry. Here are the reasons you should consider getting renters insurance before something happens to your residence. 

Landlord Policies May Not Cover You 

Depending on the event, your landlord’s insurance policy won’t protect you, especially if someone is injured in your home. 

Worse than that, your landlord’s insurance provider can file a lawsuit against you if you’re deemed liable for any building damages. This could lead to you forking out repair costs or costs for rebuilding the property. A renters insurance policy prevents you from those potential headaches and ensures you get proper coverage against a wide range of risks. 

What Does Renters Insurance Pay For?

Renters or tenant insurance covers the costs of replacing your belongings whenever they’ve been stolen, destroyed in a fire, or vandalized by unscrupulous people. 

Furthermore, a good renters insurance policy covers the cost of temporary residence in the event of any damage that renders your property inhabitable. 

The Actual Cash Value (ACV)

Renters insurance factors in the actual cash value (ACV) of your belongings. ACV replaces items at the value they were worth when they were damaged or destroyed. Depreciation factors into the actual cash value when payments are being calculated. 

The policy can also include replacement costs. This cost replaces stolen, damaged, or destroyed items with new, similar items. However, the catch with replacement cost is that the premiums for it are higher than premiums for ACV policies.

Have a look at the details of our renters insurance and, if you like what you see, get a free quote right away.

When to Get Renters Insurance

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If you currently rent your home or apartment, you probably rely on your landlord for a lot. They shovel the drive, they cover most repairs, and they’re responsible for keeping the property in good shape. But when it comes to bigger situations like natural disasters, your landlord probably won’t be able to help you. Renters insurance is the best way to protect your belongings if you live in a rented dwelling. If a fire or flood sweeps through your building, renters insurance can reimburse you for the loss of your items. Here’s what you need to know about getting a policy.

Who Can Get One and Popular Policy Options

Anyone who rents can get a policy! There are several types of coverage, ranging from the bare minimum to extra protection. Before you decide what’s right for you, think about what you’d have a difficult time replacing. That’s a great way to start the conversation. Your renters insurance should cover the physical items that are most precious and difficult to replace. This should include technology, furniture, and other precious items that have value on the market. Also, don’t forget your clothing! If a fire burns down your apartment, you’ll need coverage to get some new clothing. Keep in mind that some renters insurance covers you in case of theft or vandalism. If you live in a neighborhood where that’s a risk factor, then you definitely need coverage.

Home in Leadville Colorado
If you live in a rented home, make sure you have robust renters insurance.

Mistakes to Avoid

Don’t make the mistake of thinking that you don’t need renters insurance. Depending on what you need to be covered, it could be a very affordable monthly fee for peace of mind. It’s not only extremely wealthy people who need to protect their possessions. Equally, don’t make the mistake of duplicating coverage that your landlord already has. If possible, reach out to them to ask about coverage. Some municipalities and states have laws about requirements for renters insurance. Make sure you’re adhering to local laws and covering your most essential possessions.

Ready to explore your options? Contact the Prince Insurance team to find the right policy for you and your needs.