4 Benefits of Renters Insurance

When you own property, you’re in charge of protecting it with homeowners insurance. However, if you rent, homeowners insurance is the landlord’s responsibility. Unfortunately, the landlord’s policy won’t protect you or your belongings. For this reason, you must consider renters insurance. If you would like to learn more, check out these four benefits of renters insurance.

1. Provides a Hotel Room After a Disaster

Disasters can strike at any moment, and if they make your home uninhabitable, where will you go? If you have renters insurance, it likely covers the cost of a hotel room in certain circumstances. The insurance will only cover a hotel room if you are unable to stay in your rental. Common perils that activate this benefit include fire, windstorm, riots, smoke, theft, freezing of plumbing, and vandalism.

Your coverage depends on the amount of loss-of-use coverage you purchased. In most cases, you will be placed in a local motel or hotel, and the provider may choose the location for you. You may have the choice to stay at a different or better hotel, but the insurance probably won’t cover the total cost, so you will have to pay some of the cost out of pocket.

2. Protects Item in Your Possession

If items in your rental are stolen or damaged, you’re out of luck unless you have renters insurance. The amount of money you are reimbursed, however, does depend on your policies limits. The insurance carrier will never pay more than your policy maximum. You’ll also need to determine which option is right: broad form or comprehensive form.

Broad form coverage includes specific events like fire, theft, vandalism, smoke and anything else listed in the policy. Comprehensive form coverage includes common risks unless they are specifically excluded from the policy.

Finally, protection also depends on whether you purchased cash value or replacement cost coverage. Cash value only covers the cost of the lost item at its current market price, and replacement cost coverage covers the cost of a totally new item.

3. Covers Medical Expenses for Injured Visitors

In most cases, the landlord oversees the property and keeps it well-maintained and safe. Therefore, if the tenant keeps complaining about a damaged porch, but the landlord neglects to fix it, the landlord may be responsible if someone gets hurt on the porch. However, in some cases, the courts may blame you for the injury. In this case, you’ll want renters insurance.

For example, if your kid and their friend are playing, and the friend gets hurt, your renters insurance will cover any medical expenses. Similarly, if your dog injuries someone on the property, your landlord’s insurance won’t protect you. Only renters insurance can help.

4. Pays Legal Cost for Lawsuits

In some cases, an injury or damage to someone else’s property may lead to a lawsuit. Without coverage, you’ll be responsible for any court fees, attorney fees, and any settlements the courts awards to the defendant. Renters insurance will cover the entire cost up to your policy’s maximum, preventing the risk of financial devastation.

Renters insurance even protects you if your landlord tries to sue you. Perhaps they blame you for damage you didn’t cause and sue you for the costs. Again, your insurance will kick in to cover the costs. However, insurance will not cover the cost of unpaid rent, even if your landlord sues to obtain it.

If you rent your home or an apartment unit, you need renters insurance. Not only will it protect items in your possession, but it will also cover the cost of lawsuits and medical bills if someone is injured or if their property is damaged. If you would like to learn more, or if you want to get a quote on a policy, contact us at Kenneth Rhodes & Associates, Inc., today.