A little over 44 million homes are rental properties, which apartments making up the majority of those properties. The reasons for that vary. Some people prefer apartments, while others live in cities where apartments are the norm.
Beyond that, though, many younger adults don’t want a house before they settle into an area on a permanent basis. Plus, there is a housing shortage driving up the prices of houses.
Once you take up residence in a rental, though, you start hearing about renter’s insurance. Are you asking, “What is renter’s insurance?” If so, keep reading for our guide to everything you need to know about renter’s insurance and what it covers.
What Is Renter’s Insurance?
As a rule, anyone with a mortgage must carry homeowner’s insurance to help deal with damage to their home. Renter’s insurance helps cover some of the same ground as homeowner’s insurance, except it applies when you lease an apartment home or even a room in a home.
While it might seem like overkill, most apartment dwellers have most of the worldly possessions in that space. Getting some kind of protection in place makes sense, or you risk losing everything.
What Does Rental Insurance Cover?
Rental insurance coverage applies to three main areas. First up is coverage for your personal property. This covers things like replacing clothes computers, and even books in the event of a catastrophe.
Next up is some basic liability coverage. This kicks in if you accidentally damage someone else’s stuff in the course of going about your day at home. It may also cover some medical bills for someone else if they are injured in your home
The last area is living expenses. Let’s say that there is a fire at your apartment building. It may take days or weeks before you can safely live in your apartment again.
The living expenses coverage helps you pay for things like a hotel while you wait for that to happen.
Cost of Rental Insurance
Whenever you buy insurance, you want affordable coverage. The same holds true for renter’s insurance. There is good news.
On the whole, renter’s insurance is inexpensive. The price can range from as little as $10 per month up to around $25 per month.
The actual cost will vary based on a few factors. The insurance company you pick and your location can affect the price. The total amount of coverage can also raise or lower the price.
Renter’s Insurance and You
Now that you have an answer to the question of what is renter’s insurance and know what it covers, you can think about whether you need it. Given that the insurance is fairly inexpensive, it’s almost always a good idea for renters to get a policy.
A catastrophe in your building can deprive you of all your worldly belongings. Even if you can move back in, you may end up shelling out for hotels for a while before that happens.
Looking for more rental tips? Check out the posts in our Real Estate Talk section.