Are you a college student? A renter? Is this the first time you’ve left home? I remember those days. The freedom, the parties, the friends. If I could go back, I would. But I would change just one small thing. I would have invested in renters insurance.
What Is Renters Insurance?
Renters insurance is a particular type of insurance policy provides two key benefits:
1. Insurance Liability: This protects the renter from any lawsuits claimed against the property while he is dwelling in it and will pay for certain amounts of damage that might be caused to the dwelling, structure, or land upon which it rests. Most of the insurance liability, however, is provided by the owner of the home who maintains custody of the property even when it is rented to another.
2. Protection from Damages to Personal Property: While occupying another’s docile, the owner does not possess any rights to protect the tenet’s personal property. If theft, vandalism, natural disaster, or a wild party strikes, anything that disappears, is damaged or destroyed will not be covered by the home owner’s insurance. Renters insurance, however, will ensure that lost, damaged, or destroyed property will be replaced or refunded.
How Does Renters Insurance Protect Me?
As soon as you purchase your policy, you receive immediate protection. You are not, however, protected from damages that might be considered deliberate. If you destroy your property for whatever reason, the policy likely will not cover the cost.
To remain protected, damages must be caused by forces outside yourself that are beyond your control. Some have thought that they could destroy their property and receive insurance money for it. This is called insurance fraud and is highly illegal. Not only will you remain unprotected, but you will likely also face criminal charges for the destruction you caused.
It’s also important to remember that not all natural disasters are covered with renters insurance. While water damage is typically included in most policies, flood insurance must be purchased separately. Luckily, if the property explodes, most plans will cover that.
Lastly, only your renters insurance protects your property. While a roommate may purchase renters insurance for himself, this will not protect you in the slightest even though you live in the same home. Renters insurance only covers the property of the one who purchases it. Everyone renting needs to purchase their policy if they wish to remain protected.
Purchasing Renters Insurance
Before purchasing renters insurance, you will need to determine the level of coverage that you need. Coverage is the amount that the policy will cover. Determining how much coverage is needed will often require that you calculate the total monetary value of your personal belongings. Typically, coverage begins at around $100,000 with an average monthly rent of $12 per month.
This means that even if you own only a few thousand dollars in personal belongings, you will be covered for up to $100,000. This can be crucial especially if the damage is ever caused to the property by your actions. In short, you can pay $12 per month to protect you for $100,000 worth of damage or wait until the damage happens and end up paying way more than you’d want.
If you’ve made it this far, then I’m sure you realize the value of renters insurance. For a little bit of money per month, you can ensure that you will remain safe and protected.