When you rent an apartment or condo,
you may think you don’t need to worry about getting insurance. But living
without this crucial safety net could land you a hefty bill if an unexpected
emergency arises.
Renters Have to Pay Even if it’s Not Your Fault.
Accidents and natural disasters
happen — from freak electrical storms that fry your wiring to massive
flooding that submerges everything under a foot of water.
If they happen to you, your landlord
is liable for damage to the building. This means they’re responsible for
returning your apartment to a safe and comfortable place. But they
don’t have to cover any damage or theft of your personal property, nor will
they cover any medical expenses if you or any guests get hurt.
You’re on the hook for these bills and any additional living expenses in case you need to find a
new place to live while your landlord repairs your home.
To see what kind of costs you could
be facing down, let’s look at the fallout of a major flood as an
example.
If dirty water or sewage damages these items, you could have to replace
your couch, wardrobe, TV, and laptop. To make matters worse, you must consider booking
a hotel room while your landlord takes care of the damage. This
kind of emergency could cost you thousands of dollars as a renter.
Do You Know How You Would Cover a Bill That
Large?
In the best-case scenario, you’ll
have the money you need sitting in your checking or savings account, and this
cash is not already dedicated to an existing bill.
If you don’t have an emergency fund,
you may turn to installment loans online. Taking out these small-dollar
loans is simple and straightforward, making them a suitable backup to an
emergency fund in unexpected emergencies.
While convenient, they only
postpone the inevitable. Repaying an installment loan online is a round-about
way of paying out-of-pocket for these emergency expenses.
It’s unfair, but that’s why renter’s
insurance exists.
What Does Renter’s Insurance Cover?
For a small monthly premium, the
typical renter’s insurance covers the following expenses:
- Damage to Personal Property: If a natural
disaster or emergency damages your personal property, your insurance will
cover the cost of the damage up to your policy’s limits. This
may include costly electronics,
furniture, clothing, and any items that may have
been stolen.
- Living Expenses: If it’s
unsafe to stay in your rental apartment due to the damages caused by the
accident or emergency, your policy has a “loss of use”
coverage, which pays out funds above and beyond your everyday living
expenses.
- Medical Expenses: In dire
situations, an emergency may hurt you or someone else in your home. Your
policy may cover the cost of medical attention.
- Personal Liability: If you’re at
fault for an emergency that causes damages or injures someone in your
home, your insurance will cover your liability expenses, too.
How Much is Renter’s Insurance?
In the U.S., the average policy costs $187 a year, which
breaks down to just under $16 a month. However, rates may vary widely depending
on your location and coverage.
Regardless of your pay, it’s
likely smaller than most of your regular expenses, such as utilities or
groceries. That’s why you must consider taking out a policy if you
rent. It protects you from costly, unexpected bills for roughly the same price
as a premium subscription to Netflix.
