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Renters Insurance: An Insurance Type That’s Taking Over

Most things in life happen when we least expect them. On the one hand, this can be a good thing – meeting your soulmate, landing a great job interview, etc. On the other, it can throw us off balance. What can you do if there’s a fire in your home, or your apartment gets burglarized?

Unless you’re prepared for situations like these, there’s not much that you can do. Most people think that things like these can never happen to them, but they somehow do. While you can’t retrieve things that’d been lost in a fire, for example, you can get peace of mind knowing that if something like this happens, your renters insurance can help you out.

Let’s take a look at why renters insurance is taking over, and what its benefits are.

Why is It Surging in Popularity?

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Traditionally, it was believed that renters have fewer things to worry about. If there’s a plumbing issue, they can call the landlord to fix it. The stove isn’t working? Call the landlord.

However, the landlord, or the landlord’s insurance, doesn’t cover everything inside the renting unit. The landlord is responsible only for their own items, like furniture, for example, and appliances. They’re not responsible for the renter’s items.

So, in case of a burglary, an accident, or a catastrophe, the landlord cannot help you. Any items lost or people hurt are the renter’s responsibility. This is why more and more people are turning to renters insurance.

What Does It Cover?

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The big question of the day is what the renters insurance covers. Of course, depending on the insurance company and the policy itself, renters will get different coverage.

Typically, the insurance will reimburse you if your items have been destroyed in:

  • Fire
  • Theft
  • Water damage
  • Vehicle damage
  • Vandalism
  • Smoke

A renters insurance can help you get back on your feet in many other unexpected situations. It can cover any medical bills in case a guest gets injured in your apartment, be it in any of the mentioned perils, or if they slip and fall in your home. The insurance also covers any legal fees if you were taken to court by the said guest.

If the renting unit becomes uninhabitable, the renters insurance also covers the temporary living expenses if you have to be relocated until the home is repaired.

What Doesn’t It Cover?

All insurance companies and policies have to draw the line somewhere and refuse to cover certain items or damage caused by certain events.

When it comes to renters insurance, there are a few things it doesn’t cover. It does cover all of your items, even the ones you’ve left in your car. In case some items are stolen from your car, you’ll be covered. However, if your car is damaged or stolen, you’ll get nothing. No motor vehicles are covered by renters insurance.

It’s also important to note that if you’re living with a roommate, your insurance doesn’t cover them or their items. Each person must have their own renters insurance, unless you’re related by blood, marriage, or adoption.

You can read up on the other things that aren’t covered by the renters insurance at Lemonade.

It’s Joining Health and Car Insurance as a Must-Have!

Car insurance is a legal obligation almost everywhere. Even if it weren’t so, it’s just common sense to have it. Everyone’s aware of how common accidents are, and it’s always better to be safe than sorry.

The situation is the same with health insurance. Medical costs are rising around the world, and it’s said that most families are one serious illness away from bankruptcy.

With more and more people choosing to rent rather than buy homes, renters insurance is becoming a must. As seen here, if you want to ensure your financial stability in unexpected situations, these three insurance policies can give you peace of mind.

Is It Costly?

Most renters assume that renters insurance is as expensive as homeowner’s insurance, and most renters are wrong.

The cheapest insurance is about $9.58 per month, while the most expensive one is around $20.33.

The cost of the insurance depends on many factors, including your location, credit score, age, etc. However, it’s much more affordable than most would think.

What Should I Keep in Mind When Getting Renters Insurance?

When getting renters insurance, it’s a good idea to do some research beforehand. Check out a few different insurance companies so that you can compare their prices and benefits.

To ensure that you’ll be covered in unpredictable events, you should try to keep the receipts of all your purchases. This will help you estimate how much coverage you will need, and it will make it easier for you when you have to make a claim.

Renters insurance can offer you some financial stability in unpredictable situations. With the benefits it offers, it’s no wonder it’s taking over.

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