Renters Insurance for Apartments: Pros and Cons
“Renters insurance for apartments” is a common topic, if you’ve been shopping for a new place lately. This is an increasingly popular type of policy for renters that many landlords are on the watch for. It directly benefits you and your possessions if something goes wrong while you are renting. However, these policies aren’t for everyone, so it’s important to know the facts before you leap onboard.
What Does Renter’s Insurance Do?
Renter’s insurance acts very much like homeowners insurance, but for those renting out an apartment or studio (not for the landlord). It is designed to protect your belongings from a variety of events that could lead to their loss or destruction. Basically, renters are compensated for damage to vehicles, and personal property from things like fire, explosions, riots, theft, falling objects, vandalism, ice or snow problems, equipment malfunctions, and other issues.
This applies primarily to your personal property, not necessarily to the building you are renting. This means that if your belongings are damaged at work or while traveling, renters insurance for apartments will probably still pay for those damages.
Pros of Renter’s Insurance
The obvious plus to renter’s insurance is that you can claim payment for damages, which enables you to replace lost items and get your life back on track. This applies to minor annoyances like someone breaking into your car and stealing items, as well as to big disasters like a serious apartment fire.
However, there are additional benefits to this type of insurance. Renter’s insurance also protects from liability, which means that if someone sues you because of injury or damage related to your belongings, the insurance policy covers legal bills and settlements.
In a growing number of cases, landlords are requiring renters insurance for apartments before leasing out their buildings. This means that holding renter’s insurance can give you access to a greater number of high-quality renting opportunities.
Cons of Renter’s Insurance
This type of insurance isn’t free. It comes with expected monthly premiums, which can cost between $15 and $30 per month on average. Additionally, you will have to pay a deductible before the insurance kicks in – so there are definitely some ongoing expenses to consider. Most of the large insurance companies offer renters insurance quotes, including Progressive, Esurance, and AllState. Banks such as Wells Fargo also offer information on this type of insurance.
The policy will not cover everything that happens to your stuff, either. This insurance doesn’t work for major floods or earthquakes, and may not deal with specific regional issues (like hurricane winds). It also does not apply to specific types of damage involving tenant negligence or intentional acts. If something is directly your fault, or if you damage an item on purpose the policy will not cover resulting damages. Problems with normal wear and tear are also exempt.