Renters Insurance for Safe, Mobile Living

by Penny M. Hagerman

Renters insurance provides financial protection against loss. When the unexpected happens and items get ruined or damaged, this specialized protection pays to repair or replace them in exchange for yearly premiums.

Renters Insurance for Safe, Mobile Living
Renters Insurance for Safe, Mobile Living

Landlord vs. Renters Insurance

While landlords must take responsibility for damage sustained by apartment buildings, condos or single-family structures where renters reside, renters must usually buy contents coverage for their own possessions: items such as clothing, electronics and furniture.

However, depending on the provisions of the landlord’s insurance policy, a personal renters plan may also be needed to protect interior lighting, appliances, and interior walls and structures used only by the renter.

Check with your landlord to find out what is and isn’t covered under his or her insurance policy. Where gaps exist, you’ll need to purchase insurance coverage to ensure financial protection in case of disaster.

Advantages of Renting

While foregoing tax deductions homeowners enjoy, renters are afforded flexibility that escapes those who purchase their homes.

When housing prices drop, homes remain on the market for months—and homeowners must wait for the perfect buyer before moving on. If you lease your home, you simply give 30 days notice, recover your deposit, move to their new place of residence, and purchase insurance to protect your belongings.

If you’re still renting when you die, there’s no property to settle, allowing beneficiaries to sort through your treasures, remove them from the rental property and return to life as usual. There are no mortgage payments or HOA dues to worry about—and no home to sell.

With only first and last months’ rent, you can lease a home and get insurance in short order. Contents insurance costs only about $30 a month, so you’ll have money left over for necessities like groceries, gasoline and transportation once premiums have been paid.

When Renters Face Disaster

When disaster occurs due to one of about a dozen situations, contents coverage picks up the tab, allowing you to fix or replace anything damaged or lost.

Perils covered under this type of insurance include smoke, fire, lightening, freezing, windstorm, hail, theft, vandalism, malicious mischief, explosion, broken glass and falling objects.

If someone accidentally gets injured in your home, your insurance also protects against liability claims by paying for legal representation in court using money paid in insurance premiums—and covers medical bills for the person injured.

If you lease your home, never go without the right insurance protection, no matter where you reside. Not only are you vulnerable to loss; if someone gets hurt in your home, you could also be held accountable for their loss as well.

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