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Renters insurance is a smart purchase for anyone living in a home they don’t currently own. If a life changing event like a fire takes place in your home, the cost of replacing everything you own can be crippling. Renters insurance also applies if you have to move your things to a self storage unit.
Take a quick look around your home and try to estimate the amount it would take to replace everything, including furniture, appliances, décor items, electronics and personal items. For the average homeowner, this adds up to thousands of dollars. Unless you have that amount in savings for a rainy day, you are not likely to be prepared for an emergency.
What Does Renters Insurance Cover?
This type of insurance protects the contents of your residence in case the worst happens. Some of the issues a typical policy covers include:
- Fire and smoke damage
- Water damage due to a burst pipe
- Break ins that damage the home structure
- Theft of your personal items
But there is more to renters insurance than the property it covers, which is known as contents coverage. It can also protect you in case someone is hurt while visiting your property thanks to the liability coverage that is likely to be included. Since the coverage extends to your visitors, you are protected in case of an accident that causes injury. For example, if a friend or family member is over and slips and falls, they may end up asking you for money to cover the resulting hospital bills. Your renters insurance may cover this or at least offset some of it.
Another benefit of having insurance is that it can help with expenses that arise when your home is damaged and you have to live elsewhere. In the case of structural or significant damage, you may have to move out while weeks or months of repairs are done. For many people, this means living in a hotel or short term rental to avoid imposing on friends or family. Between the cost of staying there, the amount spent on take out food and the cost of replacing personal care items, this can add up to a very expensive period of time. Luckily, renters insurance will kick in to cover these costs and help policy holders stay afloat while repairs are being completed.
The cost of the cheapest renters insurance can be just a few dollars a month, and the amount you spend is well worth the peace of mind it gives you.
Reviewed and edited by Albert Fang.
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Article Title: What is Renters Insurance and Why You Should Have It
https://fangwallet.com/2018/04/26/what-is-renters-insurance-and-why-you-should-have-it/The FangWallet Promise
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