5 Most Common Renters Insurance Questions – Answered

renters insurance questions

Renting, instead of owning a home, has become one of the most viable housing options for millennials not ready to take a mortgage. It is a smart move for young adults striving for financial stability by avoiding unnecessary debts. However, while postponing homeownership may make sense depending on your financial situation, living without renters insurance doesn’t. Why is it prudent to purchase financial protection for your personal belongings and liability as a tenant? A look at the frequently asked questions about renters insurance will provide the answers you seek.

Common Renters Insurance Questions

Are my personal possessions worth the cost of renters insurance?

Many young tenants without renters insurance don’t think that their belongings are worth the investment. Most of them are wrong to reason this way when they own personal items worth several thousands of dollars, such as laptops, furniture, and clothing. Generally, the financial setback you’d suffer if you lost such possessions at once, dwarfs the average annual cost of tenant’s insurance.

Renters insurance protects your belongings against loss from misfortunes such as:

  • Fire or smoke
  • Vandalism
  • Theft
  • Windstorm
  • Explosives
  • Water damage (such as due to plumbing problems)
  • Off-premises coverage (belongings outside your home are covered)

Also, your renters’ insurance package includes liability protection, making it worth the investment. This policy component covers any personal injury or property damage for which you may be held liable. However, the maximum compensable amount or cost depends on your policy limits.

How much per month or year will I pay for renters insurance?

Pricing is one of the most common renters’ insurance questions you may ask as a young tenant. Most millennials avoid buying the policy under the impression that it’s way too expensive. However, the opposite is true, with an estimate that the cover costs about $20 per month on average. This price is pretty reasonable considering that it lets you protect several thousands of dollars’ worth of personal possessions.

What additional risks does renters insurance cover?

Renters insurance protects you against other unforeseeable losses or costs that may come with living in a rented apartment, condo, or townhouse. For example, the policy pays for extra living expenses incurred if your house becomes uninhabitable, forcing you to move out for a short time. It covers your hotel bills or other additional costs as your home undergoes repair.

Why won’t my landlord’s insurance policy protect my belongings?

Your landlord may be liable for personal injury to visitors or other users of their property. They’re also responsible for their building’s maintenance or repair costs after flood or fire damage. Your landlord’s insurance policy usually covers these risks. It protects apartment owners from financial loss when fire guts their property. However, if your couch or TV set got damaged in the same unfortunate event, your landlord’s policy wouldn’t help you recover anything. Neither does it give you personal liability protection.

Does renters insurance pay for my brand new replacements?

It can, but only if your policy covers your belongings for their full replacement value. It would pay for a brand new dining table to replace a similar one damaged in a covered misfortune. You’d incur no out-of-pocket costs in this case, except for the mandatory deductible.

What if, instead, you had an actual-cash-value insurance policy for a laptop that got stolen? In such a scenario, you’d receive cash-value compensation equivalent to the item’s real valuation at the time of theft. This protection enables you to replace your lost personal belonging with another of the same age and condition.

Have you insured your belongings though you live in a rented house? Answers to these common questions about renters insurance will help you make an informed choice. Contact us at Chambers & Company Insurance Brokers for help selecting a personalized cover to suit your needs and budget.

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