1. Caters for Additional Living Expenses
In a scenario where your house is undergoing repair following a disaster like fire,you won't have to go back to your pocket to pay for your tenants' stay in a hotel, as long as you are covered by renters insurance. The insurance includes 'additional living expenses' coverage which takes care of them whenever there is a disaster or your place in uninhabitable, and your tenants have to live somewhere temporarily. The coverage would save you from the expenses such as renting another apartment for your tenants.
2. Comes with Fire and Wind Coverage
Renters insurance policy is designed to offer covers for your tenants, including protection from fire or wind damage to their possessions. Such risks include trees falling on the property during a storm. It depends on what suits your tenants, according to you. If a tenant is willing to take a renters insurance by him/herself, they should do thorough research. They can either receive cash value for their possessions or the replacement cost. Replacement costs are a little expensive than cash value. Find one that suits your needs.
3. Protection from Damages Caused by You
If a fire accident happens in your rental, and you are unable to contain it, and it spreads to your neighbor's rental, prepare to compensate your neighbor or have a day in court. But with a renters liability insurance, the issue will be taken care of. In short, just like your full coverage car insurance, the renters liability insurance protects you from most damages caused by your misdoing. So, the insurance will compensate the neighbor.
4. Protects You From Theft
Your furniture and appliances are worth a lot. You probably have a computer where you store your data, run apps, and entertain yourself. Imagine coming back home from work or a night-out only to find a hall? Your computer with all the documents, data, and videos is gone, what would you do?
Most renters insurance providers have a standard payout, which is mostly the replacement value for your damaged or stolen computer. You can also purchase extra coverage for your other items like silverware, jewelry, firearms, antiques, shoes, personal property, name it.
5. Caters for Your Legal Costs if You're Sued
If a person is in your apartment and they get injured, or you accidentally injure someone, they might take you to court, and that means you will have to find an attorney. You can never predict the outcome. You might lose the case and be required to pay a fine. The liability coverage on the policy of the renters insurance can take care of your legal costs and the court awards as long as it's not beyond the policy's limit. It's the tenant who chooses the limit, starting from $100,000.
6. Protects Your Visitors From Injuries
As long as you have a renters liability insurance, if a guest gets injured in your apartment, your policy will pay the medical and legal bills. The amount of protection is determined by individual policy. Renters liability insurance guarantees tenants added protection from sudden financial disasters that could affect their financial wellbeing.
Conclusion
As a tenant, don't assume that buying renters insurance is too expensive or awaste of money. You can't know what tomorrow holds, and it's advisable to protect yourself from accidents and damages. Insure your possessions with a renters insurance that works for you.