What is the point of having renter’s insurance anyway? Do I really need it? Aren’t I just throwing away money that I could use on other things, such as that new sofa chair I’ve been wanting for my living room? These are some of the questions you may be asking yourself when thinking about renter’s insurance. Whether you’re renting an apartment, condo, or home in Madison, renter’s insurance is a must. It is required for most rentals now a days, but even if it is not required, here is some basic information on renter’s insurance and why it’s worth having for your apartment.
What is Renter’s Insurance?
A landlord’s insurance covers the building itself, however it does not cover your belongings. Think about all of your personal items in your apartment, and imagine losing all of those belongings and the cost to replace them yourself. Renter’s insurance protects your personal property against certain types of losses, such as fire, smoke, vandalism, theft, and more. It also covers any damage or injury for you or any guest you may have in your rental.
Examples Where Renter’s Insurance Comes into Play:
-You are on the bottom floor of a rental building and a pipe bursts, causing the whole level to fill with 2 feet of water. All items damaged in your unit would be covered with your renter’s insurance. If you do not have renter’s insurance, the apartment owner is not responsible for your damaged items.
-You leave the water running in your bathtub and it runs onto the floor and into the apartment below you, causing damage to not only your unit, but the unit below you and some of their belongings. Your renter’s insurance will cover your neighbor’s damaged items, as well as any damage to both units because of the water.
-You overload an outlet in your apartment and it catches fire, destroying your computer. If you have renter’s insurance, this will cover replacement of the computer, as well as anything else that was damaged.
Shopping for Renter’s Insurance
Depending on your type of dwelling and how much personal property you want to cover, there are several different types of renter’s insurance options to choose from, and most are very inexpensive. Shop around for the best types of renter’s insurance that fits your needs. If your property owner or management company requires renter’s insurance, make sure the policy fits both your guidelines as well as theirs. If you already have car insurance through a company, ask for a discount if you bundle. Don’t be afraid to ask questions and make sure you get the appropriate coverage that’s right for you.
Tips to Remember In Case of a Claim
Make a list of all of your personal property and keep it somewhere online or outside of your apartment. Pictures and/or videos may work best, and if any items have serial numbers, take a photo or write them down. If you would rather keep your list on site, store it in a fire-safe box. By having this information, if any items are damaged or stolen, you are able to reference it for your insurance agent, which will also speed up the process to replace your items.
Now, just because you have renter’s insurance does not mean you can be more careless. Claims do take time and each claim, as with any other insurance, may cause your premium to go up. Hopefully this article gave you a better understanding of renter’s insurance and why it is important to have. Don’t get stuck in a loss and out of money, be smart and get renter’s insurance.