Generally, you only need renters insurance if your building or landlord requires it, however, if you are renting long-term, taking out a renters insurance policy could swing in your favor.
For many tenants, renters insurance provides a valuable safety net in case you fall into difficult financial times or damage the property you’re living in. Insurance policies tend to be very quick and easy to buy online, and here at PropHub we have fantastic and affordable policies on offer!
What does renters insurance cover exactly?
Personal liability: Protects you against the legal liability of an accident in your home.
Loss of use: If your residence becomes uninhabitable, your renters insurance policy will cover expenses exceeding your normal living expenses.
Medical protection: Pays for reasonable medical expenses for someone injured in your residence.
Personal property damage: If your personal belongings are damaged by an event covered by your policy, your insurer will cover the cost of the damage.
How much personal property coverage is necessary?
You will want to buy a policy with personal property coverage limits greater than the value of your belongings. If you get this level of coverage, it will protect you in the event that your property is destroyed. If you want to save some money on the cost of your policy, you can purchase coverage limits lower than the value of what you own. However, you should be aware that the policy will only cover you up to those limits in an extreme event.
Insurers often give you the choice of property coverage limits ranging anywhere from $5,000 to hundreds of thousands of dollars. But, before you buy a policy, you should make a personal inventory list. This list will include the value of your possessions and will determine how much renters insurance is enough.
Take note that policies will often have sub-limits, also called category limits, for particularly high-value items.
How much renters insurance do I need?
The main decision you will be making is setting the limits of your personal property coverage and your liability coverage.
We recommend getting enough coverage to cover the value of your belongings and at least $100,000 in personal liability coverage.
Now that you’re all moved in, do you know your rights? See our previous post about tenants’ rights and what you should know.