Not Sure if You Need Renters Insurance?
We Answer 5 Common Questions to Help You Decide
While around 95% of homeowners say they have homeowners insurance, it’s much less common for renters to have rental insurance. Many tenants mistakenly believe it’s easier to reduce their monthly costs by eliminating the rental insurance premium, even though it’s usually affordable. A common misconception is that rental insurance doesn’t cover that much. Another is that it’s the landlord’s responsibility to take care of any insurance claims.
Beware: Believing These Myths About Renters Insurance Coverage Is Dangerous!
In this article, we’ll answer 5 common questions and show you why skipping rental insurance coverage is a big risk.
1. Is renters insurance required? While renters insurance is not required in Florida, a landlord can add a clause to the lease mandating it. More and more landlords are beginning to do so, because they are better protected this way. If a claim is filed on a landlord’s policy, their premiums increase, even if they aren’t at fault. Requiring that their tenants are insured also protects landlords from costly lawsuits and liability. In reality, renters insurance protects both the landlord and the tenant.
2. Is renters insurance necessary? According to the Insurance Information Institute, most homeowners insurance claims from 2015 through 2019 were due to damage from weather and natural disasters, theft, bodily injury, and property damage. Renters need coverage for the same reasons homeowners do—to cover losses of personal belongings, and to protect themselves from personal injury or property damage. Rental insurance also pays for your living conditions in case your rental becomes unsafe and you need to stay in a hotel while repairs are completed.
3. Is it expensive? Average costs can vary in Florida, but at around $20-$30 per month for a basic rental insurance plan, rental coverage is well worth the cost. You know what they say, it’s too late to get insurance once disaster strikes. Having the peace of mind that you, your belongings, and your family are protected is worth every penny.
4. What does renters insurance really cover?
When you pay for rental coverage, here’s how you’re protected:
· Personal property protection (in case your belongings are damaged).
· Financially protection in case a visitor to your home is injured and sues you. Their medical bills and legal fees are covered.
· Property damage in case the rental unit or a neighboring property is damaged.
· Coverage for losses due to theft, if your rental is broken into and property is stolen.
· Living expenses (as mentioned above) in case your home becomes unsafe or uninhabitable.
5. Isn’t damage covered by the landlord? Landlords have their own separate coverage which includes the rental building, not all the above coverages listed. Your belongings, personal liability (in case of a lawsuit) and living expenses are not covered under your landlord’s insurance.
Many people realize too late that they should have purchased rental insurance. Natural disasters, fire, theft, as well as just inviting guests into your home (resulting in unintentional damage or injuries) can lead to major financial losses without the proper coverage.
Because renters insurance is so affordable, purchasing it is well worth the peace of mind—knowing you don’t have to worry about whether you’ll be protected in case of loss.
Do you have more questions about rental insurance coverage?
Call Galezano Insurance at 239-202-0233
Get a renters insurance quote today!