Do You Really Need Renters Insurance?
Given todays apartment rental prices, you might be struggling with the matter of paying additionally for renters insurance. After reading this post, you may discover it has plenty of benefits.
In decades past, the answer was likely no, “someone or an insurer will cover me if something happens.”
Claim Denied: Changes in what insurance companies will pay out for now makes renters insurance a priority for many renters. The forgiving system that existed has been discontinued. Now you need your own coverage.
You might be thinking that renters insurance just covers your belongings and furniture. Where it’s actually needed is in accident liability. Right now, you may not be covered at all if you have a fire in the kitchen, or your bathtub overflows, or if someone falls in your unit and suffers a debilitating injury.
A research report indicated that only 41% of renters carrying renters insurance.
Typical policies are about $20 a month and offer $100,000 liability and $15,000 in personal property coverage. That’s reasonable, however, actual insurance claim costs can easily rise above these levels.
Even in 2018, Apartment Fires Will Happen
What Does Tenants Insurance Cover?
Tenant or Renters insurance policies cover you 3 ways:
1. Coverage for personal possessions
2. Liability protection
3. Additional living expenses (ALE)
All risk tenants insurance covers your personal property and gives you liability protection in the event of:
- Fire or lighting
- Windstorm or hail
- Certain water damage
What’s covered in your policy is covered in either all risk or named perils policy types. How much your premium will be depends on your building’s construction, previous claims you’ve made, and how much coverage you want.
You’re Not Covered by Your Parent’s or your Landlord’s Home Insurance
It’s all on you now. Renters are surprised when they hear that they aren’t covered by the landlord’s insurance which has its own set of coverage types and requirements. And they may not be covered by their parents home insurance either.
The landlord’s own insurance might not cover them for damage to the house, condo or apartment building by you. There really is liabiity exposure that could ruin people’s financial lives.
Landlords and property management companies want to reduce their high insurance premiums, and a tenant is often considered a costly liability by insurance companies. That cost instead must be passed onto you, the renter.
As noted above, renters insurance premiums are reasonable and consistent.
Million Dollar Property Claims
Law suits and claims can actually be very expensive. Damage to a building creates costs in the tens of thousands of dollars. Who hasn’t had a kitchen sink overflow once or spilled something terrible on hardwood floors?
And a building fire started in your unit or balcony, could cost millions. The use of rental properties for drug manufacturing and grow ops has added pressure to make tenants more accountable for careless behavior.
The Upside on Renters Insurance
Aside from helping you sleep at night and feel less anxious when you leave your unit, renters insurance can protect you from theft at home, in your car, or even on the road in a hotel room.
And if you have expensive jewelry, collectibles, bicycles, sports equipment or music instruments, you can add a floater to your policy to in case you lose them or they’re stolen. Of course, you will have to pay a deductible fee if you make a claim. That’s primarily to discourage fraudulent claims.
If you live in cities such as Los Angeles, New York or San Francisco, or San Diego you’re likely paying up to 60% of your income to rent, however your pain could be much worse if you lose all your possessions in a fire, or they’re stolen.
Renters, are you tired of how your landlord or property management company manages communication and repair/maintenance requests? Do you hate the delays when landlords respond or try to reach you at the wrong times?
Have them take a good look at ManageCasa property management software. It’s convenient and fits in with your modern lifestyle. You’ll be doing your landlord a favor.
Take it for your own Test Drive Now!
See also: Property Management Software | Apartments for Rent | Renters Insurance | 2018 Rental Housing Market | Highest Apartment Rental Prices | Best Cities to Buy Investment Property | TX Rental Housing| Reduce Tenant Turnover | Property Management Software | How to Screen Tenants | Increase Rent on Rental Property | How to Increase Property Cash Flow | Property Management Business | Property Tax Tips | Real Estate Portfolio Tips | Starting a Property Management Business | How to Use Property Software | ManageCasa Online Property Software