Almost one-third of Americans rent their homes across the United States. Renting can offer financial flexibility because they’re not tied to one property, responsible for capital Improvements, and they can move with relative ease after their lease expires.
Many renters understand the benefit of renters insurance when renting a home, apartment, or condo. Benefits include protection from the environment, theft, and other damages to their property that would otherwise be costly to replace.
However, a few other benefits of renter’s insurance are not as obvious as paying for damages and replacing personal property.
Today, we will discuss some of the more nuanced benefits of maintaining a renter’s insurance policy if you are renting your home.
What Is Renters Insurance
Renters insurance is a type of insurance policy taken out by tenants who are renting Their living space from a landlord or property management company. Usual living arrangements include apartment complexes, rental homes, or even rental condominiums.
Landlords and property owners have their own homeowners or property insurance to protect their assets in the event of a natural disaster, structural damage, or other covered losses reimbursed by their homeowner’s policy.
However, homeowners insurance for the landlord does not carry over to their tenants or the tenant’s property. Since the landlord’s policy does not protect tenant property, many landlords and property managers require their tenants to purchase a renter’s insurance policy, shifting some of the liability from the owner to the tenant.
Most insurance companies offer renters insurance at an average cost of $200 per year per policy.
Some of the primary benefits of renter’s insurance include replacing and reimbursing for the value of the stolen personal property, damages to the property by guests, children, or the tenant, and paying for temporary housing if the rental facility becomes uninhabitable.
However, there are other benefits to renter’s insurance policies that can help save money over the long term, including discounts on other insurance policies and off-premises coverage.
Many insurance providers offer discounts for carrying multiple policies through their insurance program. Renters insurance policies generally fall under bundle savings, dramatically reducing monthly and overall premiums depending on how much coverage you need and if your provider offers bundle discounts.
For example, if you have a life insurance policy from one insurance company and a renter’s insurance policy from another, you may benefit from combining them under one Insurance company. Since many insurance providers want to foster loyalty with their customers, bundle discounts may be an effective way to save money on your insurance premium while maintaining the same amount of coverage.
Another example of utilizing Insurance bundles to save money on your overall premium is to shop around for quotes from a variety of insurance providers and compare their individual coverage lines with premiums for bundled policies.
Auto Insurance Discounts
Like bundling, many auto insurance providers offer rental insurance and discounts to policyholders who combine their auto insurance with their renters’ insurance.
Combining auto insurance with rental insurance may also make managing policies and filing claims more simple and straightforward. Many auto insurance providers offer intuitive mobile apps and online claims management portals.
Having a simple system for managing and filing insurance claims is a powerful benefit, and combining your auto insurance and renters insurance May provide additional discounts on top of an intuitive claims system.
Coverage For Your Entire Household
Many renters’ insurance policies extend to the primary policyholder and roommates as long as the stated value of property in the house or apartment matches that of the policy coverage limits.
Since personal property can be costly and hard to replace, rental insurance can be a great way to make sure that you and your household will be reimbursed in the event of a fire, theft or other covered loss that would otherwise create excess financial pressure.
Off-Premises And Travel Coverage
Traveling is a fun and rewarding way to see the world and experience new food, cultures, and landscapes. Regardless of how you travel, there is always the risk of losing something important such as a camera, misplacing your luggage, or even having your personal property stolen.
Many travelers do not like to think about potential losses while traveling because it can detract from the overall experience. Thankfully, renters insurance extends to your personal property even when you are traveling anywhere in the world.
This means that if you lose something or experience a theft, you can file a claim through your renter’s insurance policy, and the insurance company will reimburse you up to the coverage limit for covered losses.
Make sure to check with your insurance provider and read your policy documents before traveling to see how much travel coverage you have and what covered losses are included in your policy.
Peace Of Mind
Renter’s insurance provides numerous benefits for renters ranging from the reimbursement for losses to pay for temporary housing if they are just placed due to a natural disaster or damage to their principal residence.
One of the most powerful benefits of a renter’s insurance policy is the peace of mind provided by a relatively affordable premium. There are not many insurance policies that will reimburse a renter’s policy for a similar premium.
For example, A fire may cause up to $30,000 or more worth of damage to you and your personal property, and if you have a renter’s insurance policy that may cost $200 per year, it will reimburse you for your loss.
Although there are many obvious benefits of renter’s insurance policies, hopefully, you can see there are some supplementary benefits that make renters insurance even more attractive to tenants of rental properties.
These additional benefits range from travel protection to lowering your overall insurance bill, and if you have any questions regarding travel insurance, or if you want to learn more about purchasing a renter’s insurance policy, check out our reviews and other guides!
* This content is not provided by the financial institution or the offer’s provider. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and does not constitute a financial or expert advice.