I’m still on the road, hanging out in Minnesota. The lovely Louise Baker offered to guest post and I gratefully accepted. Enjoy!
It’s important to know when you’re moving into a new rental home or apartment, your landlord carries insurance only on his building. It’s up to you to insure anything inside by purchasing renters insurance, or HO-4 as it’s known in the insurance industry. There are five primary reasons every renter should have insurance.
1. Protection From Natural Disasters
If your home is damaged by strong winds, hail, lightening, volcanic eruption, or even a fire, renters insurance will cover your losses. Floods and earthquakes are rarely covered on a renters insurance policy. If you need coverage for those eventualities, make sure you let your agent know.
2. Protection From The Unexpected
Say a small plane hits your home, or a car veers off the road and comes through your front door. Renters insurance will cover those things. Likewise if your home is damaged due to civil unrest or riot, you’re covered. Imagine your hot water heater explodes, smoke from a neighbor’s fire fills your house, a water pipe breaks, there’s an electrical surge that fries your electronics, or the weight of snow causes your roof to collapse. None of these are pleasant scenerios, but they are much easier to deal with if you’re insured.
3. Protection From Mischief
If anyone decides to vandalize your home or to break in and steal your belongs, renters insurance will help make you whole again.
4. Financial Coverage When You’re Without A Home
In the event you’re unable to stay in your home, renters insurance will cover the expenses you incur while your place of residence is being repaired or rebuilt. Most renters policies limit the amount they cover under this benefit to 30 – 40 percent of the policy value. Check with your agent prior to the purchase of your policy in order to ensure that you have enough coverage to sustain you until you can get back into the house or apartment.
5. Protection From Liability.
Imagine your tub or toilet overflows and the water seeps through the flooring and stains the ceiling of the apartment below yours. This is another good time to have renters insurance as it will cover the cost to repair damage to another residence that has occurred due to an accident or negligence on your part. Likewise, If someone slips and falls in your residence or runs into a door and needs stitches, your renters insurance will protect you from that liability by covering the cost of treatment. Insurance will also cover you up to your liability limit if one of those people chooses to sue you in court and wins.