You might think that home insurance is only for property owners, but nothing could be further from the truth.
Even if you rent the property you live in, it’s important to protect your possessions as these are highly unlikely to be covered by your landlord’s insurance.
Take a look at our brief guide to rental insurance and why buying it should be a no-brainer.
What exactly is rental insurance?
Rental insurance does exactly what it says on the tin – it provides coverage for renters’ personal property. Your landlord should have an insurance policy of their own, but that will usually only cover the building itself and any furniture and appliances that they keep in the property. This means that your own possessions will be left unprotected in the event of damage or theft unless you purchase your own rental insurance.
What does rental insurance cover?
Rental insurance is an invaluable product if you’re a renter, as it provides cover in circumstances such as the following:
If the home you rent is damaged by fire and your possessions are destroyed
If a thief breaks into your rented home and steals your belongings
If a water leak in your rented property causes damage to furniture you own
When you consider the total cost of replacing your possessions in any of these scenarios, the cost of a rental insurance policy is undoubtedly a small price to pay for peace of mind. But these aren’t the only benefits of buying rental insurance.
As well as providing coverage for personal possessions, rental insurance covers you in the event that another person is injured on your property – so-called liability protection. And in addition to compensating that person for their injury and covering their medical payments, rental insurance could pay for your legal defense.
This may seem like an unlikely scenario, but it would be easy for a person to trip and hurt themselves in your home or garden, potentially leaving you with a sizeable bill for medical payments, compensation and legal fees. Having rental insurance in place could avoid these financial consequences.
How do I buy rental insurance?
It’s easy to compare rental insurance policies online and find one that meets your needs. In fact the tricky part is not finding affordable rental insurance, but working out how much cover you need.
The best approach is to create an inventory of all of your possessions – including furniture, clothing, entertainment systems, computers, music devices, sporting equipment, jewelry and clothing – and work out how much it would cost to replace them. Make sure that whatever rental insurance policy you buy provides coverage for all of these items. You should also take photographs of any valuables, as this could make things easier if you have to submit a claim.
Rental insurance may not seem like a necessity. But a few dollars spent on a policy each month could easily end up saving you thousands of dollars in the future.