Many people have some form of insurance, ranging from home insurance to health insurance, etc. But one major area that is often neglected is what is called renters insurance.
Some countries do not have renters insurance as a major insurance cover people acquire, as it is seen as less valuable. But whether you own the home or you are just a tenant or a mere occupant of the building, you still need a form of insurance cover to protect you and your family, or as the case may be.
Renters ignore renters insurance, which may turn out to cost them much more in the future, or without them knowing.
Renter’s insurance mistakes:
1. The insurance cover by the owner of the building will cover the house
Most renters believe that the landlords have already paid for whatever insurance is needed for the house, and while this is true, it is also important to have your own insurance as a renter of the building. But note that the insurance of the building only covers a few aspects, like damage to the building walls, ceiling, electrical fittings, etc.
Also the landlord is in charge of repairing or rebuilding the house in case of damage, but not damage from your own end, because you’ll have to repair damages by yourself.
2. The rental home has good security, so there’s no need for insurance
Most renters do not think about the security of the building because they feel it is already insured by the owner of the building.
But it is important to have your own renter’s insurance cover because if any of your property is stolen from the house, it may be difficult to replace it immediately. Think of it: if everything were stolen at once, what would you do in such a scenario?
The most secure house may sometimes encounter theft, so it is important to create a cover as a renter.
3. Renters are freer of most liabilities of the house than the landlord or the homeowners
Most renters think they have no business with the house because they are only renting for a period of time. But there are some cases where, as a renter, you will be held liable for certain things or activities in the house, like injury to a person in the house, which you will be held liable for.
If there’s an injury to a person inside the house, you’ll have to take care of the medical bills of the person as well as damages as a renter.
4. I have few belongings, so I don’t need renters insurance for any reason
Yeah! It is very easy to conclude that your few belongings do not require a cover; however, would you like to replace them at the same time? Think of buying them plus the shipment fees you’ll have to pay to obtain those goods.
5. I don’t need renters insurance because it is too expensive to buy
Most renters think buying renters insurance is very expensive; however, the reverse is the case because the cost varies according to the type of cover you need from the company.
The average renters insurance cover in most companies is in the region of $200 to $300 a year. So if you divide it according to monthly instalments, you are expected to pay about $16 to $25 per month.
Renter’s insurance mistakes and how to avoid them:
I. Buy renters insurance cover to cover your belongings as long as you remain in that house, and any damage to your belongings or a case of stolen property that may arise will be fully covered by your renter’s insurance cover.
Your renter’s insurance cover will also pay for a temporary home if any form of disaster occurs in the house and makes it uninhabitable.
ii. Purchase a renter's insurance cover to cover your belongings from losses arising from smoke, fire, lightning, vandalism, etc. But one thing you should know is that renters insurance does not cover flooding in your home, so you may want to get separate cover for flooding.
iii. Purchase renters insurance to cover unfortunate incidents that may arise from your rented apartment. Once you purchase renters insurance, any injury to a person within your house is fully covered. But avoid filling a claim, as it may turn out to haunt you.
iv. Purchase a renter's insurance cover that will cover your possessions in your house. However, take note of the actual amount they’ll pay. Your renters insurance cover will replace your valuables for the actual cash value, although they’ll also replace them even if there’s inflation.
But if there are too many expensive items, they may not be covered, so in such a case, you’ll be compelled to pay for an extra cover known as a floater.
V. Renters insurance is not expensive, so consider buying it because you’ll surely need it.