Did you know that the average cost of renting a one-bedroom apartment in the U.S. is around $1,300 per month? And that rent continues to rise each year. So if something unexpected happens and you can’t live in your apartment anymore, what would happen? You might be forced to find another place to live temporarily—or permanently—and pay even more money to live somewhere else. Even though you’re not actually buying your rented home, your monthly payments are still an investment in that property. Renters insurance covers your personal belongings and third-party liability against lawsuits from guests Who stay over occasionally or regularly. Read on to learn why you need renters insurance and why Esurance is the best choice for renters like you!
1. Your landlord’s insurance doesn’t cover your stuff
If you live in an apartment building, your landlord’s insurance policy covers the building itself, not your stuff. You’ll need to buy your own coverage for your belongings in the event of a fire or other covered loss, such as a break-in. Even if your landlord’s policy covers your belongings, you’ll still have to pay a deductible, which can be thousands of dollars. And you might not even be able to make a claim if your landlord’s insurance doesn’t cover your particular loss. The average renter’s insurance policy costs about $15 per month, so it’s an affordable way to protect your stuff.
2. Protection against lawsuits
Since renters insurance protects your personal assets, it’s an important part of your defense if you’re sued by someone who is injured in your home. You could face huge medical bills and other costs if a guest is injured in your home or on your property. Your renters insurance policy can cover your legal costs if you’re sued because someone was hurt on your property. And if you’re found responsible for an injury that’s covered by your policy, you may be able to use your policy to pay for that person’s medical bills. Just as importantly, having renters insurance can help you prevent a lawsuit in the first place. If you have a guest slip and fall in your home, having proof of insurance can help the guest avoid suing you.
3. Replace your belongings
If a disaster (whether it’s a fire, a flood, or an earthquake) damages your belongings, your renters insurance policy can help you replace them—and often very quickly. Your policy will pay to replace your personal possessions up to the amount of your coverage limit, which is usually determined by the amount of rent you pay each month. If your policy comes with a guaranteed replacement cost option, your insurer will pay the full cost of replacing your belongings with newer models of the same items if they’re no longer made. You can also add a rider to your policy to insure valuable items, such as jewelry and artwork, for an additional fee.
4. Repairs after a disaster
If a disaster like a hurricane, an earthquake, or a flood damages your home, your renters insurance can help to cover the cost of repairs. Your policy will pay for the repairs or replacement cost, up to your coverage limit, to repair or replace your rented home. You may even be eligible for additional living expenses if you can’t live in your apartment while the repairs are being made. This coverage can pay for temporary housing, cleaning and repair services, meals, and other necessities during the inconvenience.
5. Move-in costs after a fire or flood
If a covered disaster forces you out of your rented home, your renters insurance policy can help you pay for additional living expenses while you’re displaced. Your policy will pay for hotel or motel bills, travel, meals, and other essential living expenses if you can’t live in your home after a fire, flood, or other covered disaster. This coverage is often provided for a fixed period of time, like 20 days or 30 days, depending on your policy. If you have a long-term recovery, your policy may provide additional payments to help you pay your living expenses during the entire time you’re displaced.
6. Advance payment of liability protection
If you’re hosting a large event, like a party or a wedding, and someone is injured, your renters insurance can help cover the cost of their medical bills. Your renters insurance policy will pay for the medical bills of guests who are injured at your home, up to your coverage limit. Your policy may also cover additional living expenses if the injured person has to stay in a hotel after the event. Your liability coverage may also be triggered if someone breaks something on your property, like a vase or a lamp. You can choose to add a liability rider to your policy to increase your coverage.
7. Additional living expenses if you’re displaced
If a fire or flood forces you to evacuate your home, your renters insurance policy can help cover the cost of additional living expenses. Your policy will provide payments to help you pay for your living expenses while you’re displaced from your home. Your policy will provide payments to help you pay for your living expenses while you’re displaced from your home due to a fire or flood. This coverage is often provided for a fixed period of time, like 20 days or 30 days, depending on your policy. If you have a long-term recovery, your policy may provide additional payments to help you pay your living expenses during the entire time you’re displaced.
8. Advance payment of replacement costs
If a disaster damages your belongings, renters insurance will help you replace them. Your policy will pay the full cost of replacing your damaged belongings, minus any deductible amount. If your policy includes a guaranteed replacement cost option, your insurance company will pay the full cost of replacing your items with newer models. You can also add a riders to your policy to insure valuable items, like jewelry and artwork, for an additional fee.
9. Protects you against natural disasters
If a natural disaster hits your area, your renters insurance policy can help cover the damage to your home. The cost of repairs to your rented home will be covered up to your policy limit. If you can’t live in your home while the repairs are being made, your renters insurance may also cover additional living expenses.
10. Protects you against human-caused disasters
If your home is damaged by a human-caused disaster, like a fire or a burglary, your renters insurance policy can help cover the cost of repairs. The cost of repairs to your rented home will be covered up to your policy limit. If you can’t live in your home while the repairs are being made, your renters insurance may also cover additional living expenses.
Conclusion
The average cost of renting a one-bedroom apartment in the U.S. is around $1,300 per month. That means, every month, you’re investing in your home-away-from-home. But your monthly payments aren’t just an investment in your place—they’re an investment in the people who live there with you. Your belongings are worth protecting, and a renters insurance policy is a low-cost way to protect your investment.
