Pros and Cons of Renter’s Insurance for Apartments

By: HPadmin | April 3, 2019
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With the current state of the economy, renting an apartment has become a more feasible option compared to buying a house. This means that there has been a rise in the demand for renter’s insurance. When you rent, it is important to keep your belongings secure as the landlord’s liability only extends onto the building itself. Your personal items in the event of a fire, theft, or any natural disaster are not protected should they happen.

Having renter’s insurance is more important than most people think as it also covers the expenses of the repairs or replacement of a destroyed or lost belonging. This kind of insurance also includes liability coverage and additional living expenses. This comes in very handy when your apartment becomes uninhabitable for whatever reason and you are forced to evacuate and seek temporary shelter in, say, a hotel. While there may be a lot of benefits to a renters’ insurance, there are also disadvantages that come with the package. This article gives you a deeper knowledge of what renter’s insurance is, its advantages and disadvantages, and why you need it.

What is Renter’s Insurance?

 Renter’s insurance acts very much like homeowners insurance, but for those renting out an apartment or studio. It was created to protect your belongings from a variety of events. These events include fire, explosions, riots, theft, falling objects, and vandalism.

Since you're renting a unit of the apartment building, the personal property coverage of a renter’s insurance policy applies to your own items such as clothing, appliance, gadgets, furniture, and computer. Renter’s insurance also extends to replacing any covered item you lost when out of town or traveling abroad, for example.

Pros of Renter’s Insurance

 Aside from protecting your belongings from the circumstances mentioned above, renter’s insurance also has personal liability coverage. This means that if someone suffered an accident in your home, the insurer will also cover the medical expenses aside from property damage if such happened.

A perfect example would be when a plumber is doing repairs on a pipe inside your home. Suddenly, a pipe burst and injured his eye. If he decides to sue you, the insurer will shoulder your legal expenses and compensate for the plumber’s medical needs. Another example would be if when your child accidentally bounces a ball to your neighbor’s window and damages it. With renter’s insurance, you wouldn't have to go through the burden of paying for the damages from your own pocket.

Renter’s insurance is also very helpful when a fire or earthquake destroys your apartment building, making it uninhabitable. You may be forced to check in at a hotel to seek temporary shelter or move back to your parents while building repairs are going on. Your renter’s insurance additional living expenses coverage will pay for your hotel bill, food and any additional expense incurred from your temporary relocation until the damages of your old building have been fixed or until you find a new place to stay.

Cons of Renter’s Insurance

 Renter’s insurance has a lot of benefits especially during emergencies, but there are limits to what it can cover. For example, a basic renter’s insurance policy doesn’t cover damages caused by floods, so you will need separate flood insurance if you live in a flood-prone area. It also doesn’t provide coverage for valuables such as jewelry and family heirlooms. If you have a comprehensive renter’s insurance, your jewelry will be covered but only to a limited amount (depending on the insurance provider) and will only be entitled to a claim if the jewelry is stolen. If you lose your jewelry from fire or disaster, your insurance policy will not pay you for the loss. If you want to add coverage for jewelry, you would need to purchase a rider or an endorsement.

Unfortunately for pet owners, your renter’s insurance policy won’t cover any damages to your belongings caused by your pet. However, if your pet destroyed your neighbor’s plants or scratched and damaged their furniture, your insurer will pay for the damages due to its liability coverage. Some insurance providers even prohibit certain dog breeds from its coverage such as Pit Bull, German Shepherd, Great Dane, and others. If you want to have a separate insurance policy for your pet, you might consider getting a pet canine liability.