Unfortunate events can and do happen to people every day, and buying insurance is a great way to protect yourself from financial loss when accidents and mishaps occur. Whether you are renting a condo, a single-family home, a townhouse or another type of residential unit, it’s wise to invest in a renters insurance policy. Typically, these affordable policies will provide you with protection from damage and loss of personal items inside the rental property. Some also have a liability component and a clause that will reimburse you for living expenses if you are displaced
Each type of renters insurance policy is unique, but most will reimburse you for events related to fire, theft or other types of destruction. Most of the items that you own may be inside your rental unit, and these items can be destroyed, stolen or otherwise damaged. Such events may result in thousands or even tens of thousands of dollars of financial loss to you, but renters coverage can reimburse you for your loss.
It’s also possible to be held liable for certain events occurring on or in your rental property, such as if a friend slips and falls, if your dog bites someone and more. Liability coverage provided by your renters policy may pay for everything from medical expenses to court costs if you are sued as a result of the event.
In some cases, you may have to relocate temporarily or permanently as a result of a fire, flood or other event, and this can create a financial burden. If your policy has a living expenses clause, you may be reimbursed for hotel bills, restaurant bills, moving costs and other expenses you may incur as a result of being displaced.
Some landlords may require the purchase of rental insurance, but even if it is not required as part of your lease terms, there are definite benefits associated with having it. For a very small yearly cost, it’s a great way to minimize financial loss if something were to happen to your rental property.