Renting, for most people, is considered to be a normal occurrence before buying their first home. With stagnant wages and increasing cost-of-living, many have to find a place to rent in order to save up for a down payment. One of the most common questions renters tend to ask themselves is: Should they buy or rent? The majority tend to go with the latter of the two because of the reason previously listed.
So, why is it important for tenants to purchase renters insurance? Getting renters insurance can help cover the theft of valuable items, natural disasters, as well as the tenants themselves in the rare case of a pet biting a guest — an unusual event, but possible at the same time.
Tenants need to understand the four types of renters insurance coverage they can purchase:
- Personal Property
- Personal Liability
- Additional Living Expenses (ALE)
- Medical Payments to Others
Basically, anything that belongs to you will be covered. If you have belongings outside of the home you are renting, they are covered as well. As long as it isn’t a part of the physical structure of your place of rent, it will be covered.
This type of coverage will protect you against any incidents that are accidental or unintentional; if someone is personally injured or you cause damage to their property, that is also covered. This is where pet bites are covered as well.
Additional Living Expenses (ALE)
If you are renting in the state of California — known for its catastrophic fires — and have to abandon the property for your own safety, this coverage will pay for any living expenses incurred while staying at a different location for a period of time.
Medical Payments to Others
This type of coverage is somewhat similar to having car insurance. This coverage takes care of the medical bills of someone who is involved in an accident. This applies if the person injured is riding in a different vehicle than yours.
It is important to mention that tenants who decide to purchase renters insurance should carefully go over their policy with their agent or person in charge. This prevents any hidden exclusions from being overlooked and ending up with a different coverage than what was expected.
Getting renters insurance prevents any misunderstandings between the property owner and the tenant that could cause the relationship to sour. Bottom line is: if you are thinking of renting, you should also consider getting renters insurance.
If you want to know more information on renters insurance or anything that can help you enjoy the rental experience, please feel free to contact me or any member of our team members. We are always happy to help in any way we can.