If you're debating whether or not you need renters insurance, there are certain things you should know. The coverage that comes with renters insurance, as well as the price of coverage, may surprise many people.
1. Renters Insurance Is Cheap
In general, renters insurance costs about as much as your average streaming service. Like with most insurance, you pay a monthly fee for renters insurance coverage. There are a few different factors that go into the cost of your renters insurance. This includes:
- Your credit score
- Your location
- Your deductible amount
- Your coverage limits
For example, the average cost of renters insurance in Indiana is approximately $15.58 a month.
2. It Covers More Than Liability
Renters insurance comes with general liability, which provides compensation to others if you cause bodily injury or property damage. Renters insurance benefit other people, however. this insurance also provides coverage for:
- Medical Payments: This helps with medical bills in the event bodily injury happens on premise at your residence due to your negligence.
- Personal Property: Renters insurance helps compensate for your lost or damaged items due to fire, smoke, lightning, theft or vandalism.
- Additional Living Expenses: If the rented property is ever damaged from a covered loss, so that it's uninhabitable, renters insurance will provide additional living expenses for you to temporarily live somewhere else while repairs are being made.
3. It Doesn't Cover Floods Or Earthquakes
One downside to renters insurance is that it doesn't cover every danger your belongings might face. As a rule, floods and earthquakes are not covered under a basic renters insurance policy. You can purchase separate coverage for each, as well as additional coverage for expensive items such as jewelry and technology.
4. Landlords Might Require Renters Insurance
In some cases, landlords are legally allowed to require their tenants to carry renters insurance. This is in part so that tenants are able to receive compensation if another tenant causes them bodily injury or damages their property.
5. Renters Insurance Doesn't Cover The Rented Property Itself
One myth is that renters insurance covers the apartment building. On the contrary, renters insurance does not provide compensation for any damage done to the physical property itself. The rented structure is the landlord's responsibility to insure in case of damage due to fire, wind, hail, smoke, lightning, vandalism and other possible dangers.
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