Renter’s Insurance Policy: Why You Need One?
If you know even a little bit about homeowner’s insurance, there isn’t a lot that you need to catch up with in order to understand Renter’s Insurance and why you need it. Thinking you don’t need renter’s insurance because you don’t have any MAJOR belongings in terms of a real estate investment is a big mistake that most renters make.
Property management experts have revealed their insights about their experience in dealing with rental homes, and the one thing that was most worth acknowledging was the fact that they feel renter’s insurance is beneficial even if a renter owns possessions that amount to merely a couple of hundred dollars.
The main reason behind this could be the fact that in case of an accident, the landlord’s insurance will cover any damages to the structure but there will be no policy that states anything about the renter’s belongings and how they will be redeemed or replaced. You need insurance for your possessions specifically, and renter’s insurance is probably the most affordable kind of insurance there is.
What Renter’s Insurance Provides
Renter’s insurance will cost you no more than a couple of hundred dollars annually, and they cover losses that may occur due to fire, vandalism, smoke, explosion, theft, windstorm, lightning and water damage, as per the Insurance Information Institute.
If your property is damaged due to an event and you have to find another place to live for the time being, your renter’s insurance will afford the difference that occurs in your everyday living expenses. In addition to that, your insurance will also reimburse you for all the legal costs in case you are summoned to court due to any injury that may take place in your home.
57% of all renters don’t possess a renter’s insurance policy and most of the ones without it claim they cannot afford it, which can’t possibly be true. What people need to start realizing is that renter’s insurance is the most affordable of all and it can be availed in two forms;
- Replacement Cost: These kinds of insurance policies will pay the real and actual costs of completely replacing all your damaged possessions.
- Actual Cash Value: This insurance entitles you to receive a payment from which a deduction will be subtracted for depreciation till the limit of your insurance policy ends.
With either option, you will have to purchase a floater – a normal renter’s policy will offer very limited coverage for expensive items like furs, jewelry, silver or more. If you have possessions that exceed the limits of these boundaries, purchasing a floater with your renter’s insurance, which is an individual policy providing additional coverage for the loss of any valuables that may occur, is the best option at your disposal. Real estate investments are usually big, and once you have made one, you need to take proper measures to protect its premises. A renter’s insurance is always very helpful in creating strong tenant relations as well, and since it does not cost much and provide so many benefits, you need to find one that suits your needs.
To find out more about Atlanta real property management, Landlording, and rental homes, you can visit the website: http://alhpodland.com/.
Marina Shlomov, a managing partner at ALH|Podland Rental Homes Property Management is the author of many articles on Landlording, Property Management, and Real Estate Investing. A residential builder in the state of Georgia since 1999 and a property manager, Marina is an investor herself. Her property management company is intended “For Investors” and “By Investors” for a simple reason – she knows what investors’ goals are and she works hard to reach their goals. In her spare time, Marina likes to spend time with her family, friends, garden, read and travel. Check her out at www.alhpodland.com.
You can find Marina’s articles and comments at @rentalhomesatl on Twitter, on Facebook, Google+, Blogger. and YouTube.