Many landlords and management companies require their residents to carry some sort of renter’s insurance.
However, according to a recent poll by the Insurance Information Institute, while 95 percent of homeowners carry homeowner’s insurance, only 40 percent of renters carry renter’s insurance. This is disturbing news considering that apartments and rental properties are just as susceptible to damage as any other property. Many speculate that tenants wrongly believe their belongings are covered under their landlord’s insurance; others simply feel they can’t afford the premiums. Whether your management company requires it or not, here’s why renter’s insurance is worth every penny you spend on it.
Your belongings aren’t covered in your landlord’s policy.
Your landlord or management company likely carries insurance, but this policy typically only covers damage to the structure itself. If your belongings are destroyed in an apartment fire, for example, your landlord’s insurance will cover repairs and rebuilding of your unit, but it will do nothing to cover the belongings contained in it. Renter’s insurance fills this gap, making sure that no matter where you rent, your belongings are covered in case something happens.
Renter’s insurance is surprisingly affordable.
The national average for renter’s insurance rates comes to around $200 per year, breaking down to less than $16/month. Depending on where you live, this number could get as high as $30 a month, but even that is highly affordable when you consider that the amount of coverage at that price typically meets or exceeds the actual value of your personal property. (The average renter owns about $20,000 worth of stuff.)
Renter’s insurance covers a wide range of mishaps.
Renter’s insurance is designed to cover a huge array of possible events, including theft, vandalism, smoke and fire damage, roof cave-ins from snow and ice, and even an airplane crashing into your home. The only events that aren’t commonly covered are earthquake and flood, and you can usually purchase an additional rider to cover these, if you wish.
Liability insurance is included.
Most rental insurance policies include an average of $100,000 in liability coverage so if someone gets injured in your apartment and sues you for damages, you’re covered. This is also useful because the landlord is not liable for mishaps that occur inside your unit unless you can prove gross negligence was involved.
More can go wrong in a rental unit.
While standalone rent homes are just as “safe” statistically as any other home, apartment complexes and apartment buildings may be more susceptible to damage. When you have more people living under the same shared roof or next to each other with shared walls, there are more opportunities for someone to make a mistake or have a lapse in judgment. Since you don’t have control within your building over who might be smoking in bed or running a space heater in an unsafe manner, it makes sense to carry renter’s insurance so your belongings can be replaced if something goes wrong. Ask any renter who has had to file a claim on the insurance, and they’re likely to tell you it truly was worth every penny.
To learn about rental properties in your area or to discuss more about the benefits of carrying renter’s insurance, contact Olympia Management today at 256-894-2382.