Whether you move every year or dropped anchor in one location, the perks of renting are undeniable. If you need new scenery, on to the next one. Leaky faucet, call the landlord. No big deal.
Renting offers residents a certain amount of autonomy that buying cannot. At the same time, it also establishes a unique circumstance between landlord and renter. A relationship that often leaves the renter on the shorter end of the stick.
Looking for a new place is exciting. You have established your budget and are ready to check off your “must have” list. But when you lock down the new place with the killer views, a yard, or covered parking you have been dreaming about, the reality of the lease agreement will inevitably set in. Once the contract is signed, you have an obligation to the landlord and your neighbors.
While you don’t own the physical structure–you are still 100% liable for that could go wrong.
It’s time for renter’s insurance.
Often, we interact with renters who assume they are only responsible for their personal belongings and everything else are the landlord’s issues.
That is simply not the case. Whether you rent a single-family home or a small apartment your insurance is still incredibly important to ensure your protection. Many landlords require renter’s insurance to take residency.
It’s true, renter’s insurance is most popular for covering personal belongings. But that’s not the superstar coverage of a policy.
Renters insurance also offers a liability coverage, which is the unsung hero for all renters. This coverage protects you in the event of damage to the rented property or even of accused wrongdoing and lawsuits.
If you accidentally started a fire that caused damage to a neighboring unit that is your responsibility to repair.
Without insurance, you would be on your own to pay for that damage. With renter’s insurance, liability coverage covers you!
You are living in a space that someone else has spent a lot of time and money on. When something goes wrong, landlords often are often demanding and quick to action. Renter’s insurance is your best line of defense when the unforeseeable occurs.
It is simply amazing how often people chose to skip renter’s insurance.
Either they simply don’t see the value, don’t think about it, or don’t know to get it.
But as a renter, there are so many things that can go wrong, on a very expensive scale. But when those issued occur, you can be protected with an incredibly affordable renter’s insurance policy. Renter’s insurance is one of the least expensive insurance products on the market. Often less than what it costs to buy lunch.
Imagine this. You are entertaining friends in your apartment. You throw some food on the stove, then the most amazing thing happens outside the kitchen and you the just have to see. You step away, forgetting about the food and come back to a fire that has crept up the wall. No one is hurt and the fire is contained but there is damage to your kitchen and smoke damage in your neighbor’s apartment. The bill arrives and it is $15,000 worth of damage. You have no renter’s insurance and will pay the $15,000 out of pocket or be sued.
Only to learn later you could have bought renter’s insurance, which would have covered the damage in full, for $12 a month. And now, you are the person that saved $12 a month, to pay $15,000. Not ideal.
We see people purchase insurance on a “penny smart, dollar foolish” basis on the daily. Meaning, the primary objective when obtaining renter’s insurance is low cost. Or worse, they skip it all together. Like any other product, the lowest cost is often the lowest for a reason. In the case of renter’s insurance, it can mean there is a lack of coverage, less favorable policy language, or even incorrect rating information.
Renter’s insurance is incredibly affordable, even from the best insurance companies. It is nothing short of foolish to not take the time to seek out a quality renter’s insurance option.
Ultimately, we encourage everyone to remember what you are getting when looking for insurance. You are not simply buying a policy. It is not a line item on the monthly budget. You are buying an experience.
When you are putting your renter’s insurance policy together, you are putting together the type of experience you want to have when the worst things in life occur. It can be a positive or poor experience. But either way, it is up to you.