Are your belongings important to you? Are you prepared to face legal and medical expenses related to a potential accident in your rental home?
It is not uncommon for personal items to be damaged due to a myriad of causes; replacing these items can be costly. Without renters insurance, damages to contents in a rental property are the sole responsibility of the tenant. Typically the landlord only carries insurance on the property itself, not the contents.
If you are trying to decide whether or not to purchase Renters Insurance, do a walk through and inventory the items in each room of your rental home. When you add up the value of all items, including furniture, rugs, accessories, electronics, other technology, clothing, kitchen items and even food, etc., it adds up! Are you prepared to pay out of pocket should fire destroy it all?
There are other scenarios you might not have considered. The landlord’s property insurance will not cover the cost of damaged foods from a broken refrigerator. A roof leak dripping water into a closet and ruining clothes is not the landlord’s responsibility. James Emory Tungsvik, president of the National Association of Residential Property Managers, says. "If you wanted coverage for that lost expense, the landlord would not responsible for it. That would be part of renters insurance."
Think about having a B-B-Q and a guest trips over your garden hose and breaks a leg. Renters insurance would cover his medical expenses. This provides assurance you are covered when hosting an event at your rental property.
For the price of a take-out meal each month, these items can be covered should damages occur. "You are probably looking at about an additional $185 a year," says Tim LaCasse, a State Farm insurance agent. "I try to tell people that for less than $20 a month, all your personal property is protected." When you look at an average .50 per day, it seems pretty reasonable to favor purchasing Renters Insurance.
Be sure to shop prices and policy details. Do the research. One expert suggests contacting the state’s insurance department to ask for the five top renters insurance providers. When considering which policy to go with, take a look at what the policy covers and whether that coverage is actual cash value or the total replace cost.
Whether you decide to purchase renters insurance or not, be sure to understand the choice you make. Without it, you take a chance of both content loss and medical liability. With it, you pay a nominal fee monthly and can have peace of mind knowing your belongings are covered and your liability minimized.