Having insurance for a home you own or your car is a given, but when you’re renting a house, apartment, or other space, you may wonder if such insurance is necessary. Landlords may also express curiosity as to whether or not this type of insurance is useful. Examining multiple angles of renter’s insurance suggests that the answer is in the affirmative.
Landlords and Insurance
Whether you’re renting out the basement apartment or an entire house, you may want to know if requiring renters to have insurance is necessary. Check out local legislation to find out if you are allowed to require renters to purchase this type of renters insurance. In any case, requiring or requesting that renters purchase insurance can help both of you in the event of an incident. For example, if damage occurs to the rental apartment, the renters may not have the money to fix it. While you can try to get them to pay, you may ultimately have to shell out the funds in the end. Renters insurance can prevent this situation from coming into fruition as it can help to cover the costs.
If you’re looking at this type of insurance from the perspective of the renter, understand the many benefits. Deleterious situations can arise, and you don’t want to have to dig into your savings account to get funds to cover the costs, especially when you’re saving up money to make a down payment on a house or to cover your college tuition for the year. Paying a smaller sum of money each month to have insurance can make a tremendous difference in the long term when it comes to your financial health.
Further Reading: How can I buy renter’s insurance?
Severe Weather Conditions
As you’re considering the full situation when it comes to renters insurance, you may wonder what types of situations could occur that would elicit the use of such an insurance plan. Severe weather conditions can certainly appear. A major storm might cause damage to the home your family is renting, or a flood from a nearby river could destroy your basement apartment. When you initially sign up for the rental plan, do thoroughly examine the policy so that you know exactly what is covered. For example, some companies require you to purchase flood insurance separately.
While even having to consider the possibility of a break-in is frightening, preparing for it can help to alleviate some of the negative aftereffects. If someone breaks into your apartment and steals items, your insurance policy can help you to recover some of the costs. Without this plan, you might find yourself having to spend the money to buy all of these items again yourself. If your apartment is in a neighborhood with a high crime rate, really take into account how much this insurance policy could help you in the long term.
Your apartment could also be the victim of vandalism. Criminals might destroy the exterior of the property. Also, a fire in the living space could cause serious problems. Amidst the damage, you may also have to move out of the apartment for a period of time. A solid insurance policy can help you to deal with the costs of living somewhere else for a while and working toward the process of getting your life back.
As a renter, you do have a number of expenses, so you might balk at the thought of adding renters insurance into your budget. However, consider the major benefits that it can bring. In the long term, this type of protection can certainly help you to save money.