a renter about to realize the benefits of renters insurance

7 Overlooked Benefits of Renters Insurance

Most people know that renters insurance covers their personal possessions in their apartment if someone robs them or if there’s a disaster, but only 41% of renters have policies. Perhaps renters need to take a look at these often overlooked benefits – which offer even more reasons to buy this very affordable insurance coverage.

Additional Living Expenses

Renters with adequate insurance coverage don’t need to worry about where they’ll live after a disaster, like a fire. Renters insurance reimburses you for temporary accommodations, such as a hotel room or another apartment, while your home undergoes repairs. It may also cover restaurant meals if your place is uninhabitable and you need to eat out.

Injured Guest’s Medical Bills

If someone hurts themselves while they’re on your rental premises, your policy pays their bills, up to the policy limit. Limits vary, but they’re typically between $1,000 and $5,000.

Damage to Other People’s Property

If you back over the neighborhood kid’s bicycle, because you didn’t see it behind your car, don’t worry. Renters insurance includes liability coverage if you damage or destroy someone else’s property.

You’re also covered if your child’s baseball breaks someone’s window, or they knock over a precious item in the neighbor’s apartment.

Legal Fees

You can’t predict accidents, but you can protect yourself financially. If you unintentionally injure someone or they hurt themselves in your apartment, they could sue you and legal fees can be very costly.

Fortunately, renters insurance pays legal costs and court settlements, up to the policy limit. Minimum coverage limit is typically around $100,000, but you can buy more at a very reasonable cost.

Borrowed or Rented Items

Renters insurance covers items “in your possession.” This means if you’ve rented an expensive generator or borrowed a costly tool from one of your neighbors and it’s stolen, your policy covers you up to the policy limit.

Off-Premises Protection

Renters insurance usually includes some coverage if someone steals personal items while you’re away from home. Insurers calculate the coverage limit based on a percentage of your total coverage, typically 10%.

It’s Affordable

Many renters do not buy insurance, because they believe their landlord’s policy protects them and their belongings, which is not true. Their insurance only covers the building – not their tenants belongings.

Other renters do not buy insurance, because they believe it is too expensive. However, a 2017 National Association of Insurance Commissioners report reveals the average annual cost is $200 or just $17 a month.

You may also qualify for a discount if you have a security system, deadbolts, smoke detectors, have good credit, are over 55, or you remain loyal to your insurance company.

You probably own far more than you realize and without insurance, you could lose everything in a major disaster. Buying renters insurance isn’t complicated and it isn’t expensive.

Discuss your needs with your local independent insurance agent. They will explain available coverage and recommend limits to protect you. They’ll also check whether you qualify for discounts and may bundle your coverage for additional savings if you also insure a vehicle.