One of the questions that many renters have is whether renters insurance is worth the money or not. Unfortunately, many renters do not fully understand renters insurance and may believe myths about homeowners insurance and covering renters. If you are on the fence about renters insurance, learning about it can help you make an informed decision as to whether it is right for you. Here are three things you may not know about renters insurance.
Homeowners Insurance Won't Cover a Renter's Belongings
One of the things that you need to know about renters insurance is that it will cover the covered renter's belongings in the event of a fire, flood, or theft. One of the biggest misconceptions out there is that a homeowners insurance policy will cover a renter's belongings. Most homeowners policies specifically exclude rental properties, meaning that you may be left with nothing if you do not carry a renters insurance policy and a natural disaster or break-in occurs.
Renters Insurance Can Help With Housing If Your Rental Is Uninhabitable
Another thing that many people do not realize about renters insurance is that it helps to cover any expenses you may have if your rental becomes uninhabitable. If your rental home catches on fire, where will you go? Many people have to go to a hotel while the rental is being fixed after a natural disaster. A hotel or temporary rental can be pricey. Renters insurance helps to cover the difference between that temporary rental cost and what you would normally spend in rent.
Renters Insurance Can Legally Protect You
The last thing you should know about renters insurance is that it can protect you from a potential lawsuit. If you are doing something that leads to damage to a home, you can be sued. For example, if you leave an unattended candle burning in a rental home, and that candle leads to a house fire, the owner may be able to sue you for negligence. Renters insurance can cover you for negligence that occurs, outside of any unlawful activity. This helps you to avoid legal issues and huge amounts of debt due to an accident.
Renters insurance can cover your belongings, provide you with liability coverage and help you to find temporary housing if your rental home becomes uninhabitable. All of this provides you with peace of mind while you are renting. Reach out to an insurance provider like Woodmansee Insurance Inc to learn more about renters insurance and getting coverage.