It’s not going to happen to me – but what happens if it does? For tenants in rental properties, rental insurance can seem like just one more cost to add to your monthly list of expenses. However, renter’s insurance is key to your financial and mental well-being, and it should be an essential part of your monthly budget.
Why Get Renter’s Insurance?
You feel safe in your home. After all, your landlord has coverage for the building, right? Even if your landlord has coverage, you may be legally required to have coverage as well. Read the fine print in your lease, and you could be surprised at the commitments you made.
While you might think that your landlord’s coverage will help you in a disaster such as a fire, that coverage may be only for the building and not for the contents. Additionally, while building insurance covers building damage, it does not cover thefts that occur. Lastly, if you have guests over and one of them trips and falls, it’s quite possible that you will be legally responsible. Why open yourself to liability in this way? Renter’s insurance is inexpensive compared to the cost of rebuilding after a disaster, theft, or lawsuit.
What Does Your Renter’s Insurance Cover?
When you’re getting renter’s insurance, make sure the policy you get will cover everything that you need it to cover. It should include coverage for:
- Damage from natural disasters. Ask whether flood insurance is covered.
- Smoke damage from fires. Sometimes this is not included in your landlord’s plan.
- Damage you caused. For example, if you leave the kitchen sink running and go out of the house, you’ll need to be able to replace the kitchen flooring.
- Liability coverage in case someone gets hurt on your property.
- Theft coverage. Check to see if you can cover additional items in your storage locker and car as well.
- Additional living expenses in case you’re unable to live in your current home.
For just a few hundred dollars a year, you’ll avoid spending thousands or tens of thousands on new items for your rental property, home repairs, and legal cases.
Special Considerations When You’re Getting Renter’s Insurance
When purchasing renter’s insurance, you also need to think about special occasions. Are you getting ready for the holidays? You may have gifts in your home that require insurance. How about wedding preparations? This could involve gifts, clothes, and many other decorative items. Adding these items to your renter’s insurance will keep you covered in case of disaster.
If you have a hobby that requires specialized equipment, check to ensure that this is covered as well. For example, if you enjoy photography or playing a sport, you need to make sure that expensive cameras and sports equipment coverage are part of your plan.
What about a home-based business? Whether you do scrapbooking on the side or run a child care center from your home, your home-based business needs insurance. If you’re a renter, check with your insurance to see if it’s possible to add your business onto the policy, or you could be left without insurance for your business if a home disaster occurs.
When you’re considering rentals in the Seattle area, turn to Lori Gill and Associates. We understand Seattle’s rental market. From finding the right home to securing your renter’s insurance, we’re here to support tenants and owners in the Seattle market. Connect with us today.
