According to a recent report by Zillow, a growing number of Americans, especially younger generations, are choosing to rent instead of buying their own homes. Renting offers people more flexibility since renters are not bound by a mortgage. Renters also do not have to do any home maintenance on their rented property since that is the landlord’s responsibility.
Just like a homeowners belongings are protected in homeowners insurance policies, renters also have that protection with renters insurance policies. However, not all renters are taking advantage of this option. According to a study by ORC International, only 37 percent have this insurance policy.
Here are three important reasons renters should have a renters insurance policy:
The landlord’s insurance will not cover renters
Some renters wrongly assume that their property owner’s insurance covers their personal items and that is not the case. The landlord’s insurance policy will cover the landlord’s property under insured perils.
Renters insurance covers:
- Personal belongings including items in storage units
- Personal liability
- Toys and games
- Tools and power equipment
- Appliances owned renter
Renters insurance is economical and offers comprehensive coverage
These policies are also very affordable. The average cost of renters policy in the state of Illinois is approximately $171 a year. This breaks down to monthly payments of less than $15. Renters can save even more money by living in a gated or safe community, bundling their insurance with their car insurance company or paying their yearly premium in full.
The policy covers you while you travel
Renters insurance policies cover your belongings even when they are not inside the insured rental property. Your items are covered while they are inside your car and even while you are traveling. The liability coverage on a policy will also cover the policyholders while they are away from home.
Young man with notebook among cardboard boxes, housewarming. Moving to new house