Renters insurance has gradually grown in importance as more Americans rent homes instead of buying them. With that in mind, renters insurance is a necessity. It provides coverage for the policyholder’s belongings, protects them against liability and can even provide living expenses if the accommodation in question is rendered uninhabitable. Every policy is tailored to the policyholder, and renters need to take that into account when deciding, “how much renters insurance do I need?
What Is Renters Insurance?”
Renters insurance is a type of personal property insurance. It guarantees coverage of the policyholder’s belongings, liabilities and support during a major loss event. Both renters and subletters are eligible to take out this type of insurance. It is important to remember that a landlord’s homeowners’ insurance will not cover the personal property of the tenants they rent to. A common misconception is that anything that happens within a rented property is the responsibility of the landlord. This is not the case. If a friend trips over a renter’s sofa and breaks their arm, the liability falls on the person renting, not the landlord. This is one reason why renters insurance is such a critical insurance policy to hold for people who do not own their own homes.
Factors For How Much Renters Insurance You Need
The benefit of renters insurance is that every policy is different. Although the function of every policy is the same, different people will require different coverage amounts. It depends on where the person lives, how many possessions they have and their lifestyle. A hoarder, for example, would require far more coverage than someone who prefers minimalist décor.
How Much Personal Property Coverage Do You Need?
Personal property coverage is the portion of a renters insurance policy that provides cover for personal belongings. This can include electronic devices, furniture and appliances. Renters have to consider how much support they would need in the event of a catastrophe. It is unnecessary to value every single possession. It is strongly recommended that renters opt for a rough average as coverage for every single item also means higher premiums. Any big-ticket items, such as rare pieces of art or expensive jewelry, need to be covered under scheduled personal property coverage.
How Much Loss Of Use Coverage Do You Need?
Loss of use coverage provides for temporary living expenses if the rented accommodation becomes uninhabitable for a period of time. For example, if a major house fire guts a property, the renter would receive a payout for their hotel room, food, commuting costs and any additional expenses. Determining the right amount of loss of use coverage is tricky. The easiest way to do it is to create a monthly budget and to choose a coverage limit that is slightly higher to take into account any potential additional costs, such as a more expensive hotel room or a lengthier commute.
How Much Personal Liability Coverage Do You Need?
It is impossible to foresee whether someone is going to experience an injury in a renter’s accommodation. Personal liability coverage protects the renter from paying medical fees, legal fees and settlements out-of-pocket if this does occur. Determining the right coverage amount has become easier as an increasing number of landlords have specific coverage amounts all renters must have. If this is the case, tenants will have to have the minimum requested amount.
Otherwise, it is entirely up to the estimations of the tenant. Higher coverage limits are highly recommended as ‘blame and sue culture’ is rife across the country. It is better to pay higher premiums on liability coverage and not need it than to be sued and the coverage amounts are not sufficient to cover the associated costs.
How Much Medical Payments To Others Coverage Do You Need?
Medical payments to others coverage may appear superfluous because personal liability coverage already covers this. This type of protection is designed for smaller accidents and bills. Not only does this cover prevent renters from paying small medical costs out-of-pocket,but it can eliminate the potential for getting lawyers involved. Renters insurance is affordable, and adding this type of coverage will, in most cases, have a minimal impact on the monthly premiums due.
Ask The Insurance Experts “How Much Renters Insurance Do I Need?”
Renters insurance is one of the most important types of insurance for Americans who are living in rented accommodation. Without it, renters are putting themselves and their financial futures at risk. Talk to the renters insurance experts at Merchant Family Agency to find out more about taking out a comprehensive renters insurance policy and finding out exactly how much renters insurance you need.