5 Things You Should Know About Renters Insurance
Most people are aware of home insurance which gives protection against fire, vandalism, thefts, etc. However, not many know about renters insurance even though it’s super cheap and at times, a life saver. Plus, in many US states, the tenants are required to have renters insurance as per the law.
If you are interested in learning more about renters insurance, then the following are some of the most important things that you can start with:
#1. Your Landlord’s Insurance Doesn’t Cover You
It’s a common misconception that you don’t need separate insurance if your landlord has home insurance or personal liability insurance. The truth is that your landlord’s insurance covers only their property.
It doesn’t matter if you have been allotted one room or an entire apartment, if you are paying rent for it, then it means thatit’s your property and your responsibility. So, if a fire breaks out in your place or you get robbed, then you can’t expect your landlord to cover the damages with their insurance policy. In fact, this is one of the biggest reasons why buying renters insurance is recommended in the first place. After all, you have to take some responsibility yourself to prevent unnecessary financial burden.
#2. It’s Cheap
A large number of people who rent apartments don’t consider getting insurance just because they think it’s expensive. However, you will be surprised to know that you can get insurance cover worth tens of thousands of dollars for just $15 a month. That said, the actual premium may vary slightly from one state to another. For instance, the average monthly renters insurance cost is around $19.92in Alabama, $13.33 in Maryland, and $15.17 in Indiana.
#3. You May Qualify for Tax Benefits
$15-$20 a month for renters insurance isn’t much. However, when you add all the payments made in a financial year, then it can be a lot. If you are paying extra premium for extra cover, then the total amount can be even higher. So, it’s natural if you would want to you can take advantage of these payments in some other way. The good news is, you can do so when paying taxes.
Let’s make one thing clear, most people can’t deduct the premiums paid for renters insurance from their taxable income. However, if you are working from home and using one room exclusively as an office, then you can deduct the premium amount from your taxable income as that’s considered as a business expense. Although, you still need to meet the guidelines set by the IRS for this benefit.
Renters insurance is one of the most important types of insurance for freelancers as they don’t as many options for tax savings as the salaried professionals get. So, if you are a self-employed professional yourself, then you have all the more reason to get renters insurance.
#4. It May Cover Your Belongings Outside Home
Although most renters insurance policies cover thefts that take place inside your house, there are some that may cover thefts that take place outside. To take an example, porch pirates were rampant last holiday season as they would steal Amazon and eBay parcels from other homes when the owners or renters were away, and it’s possible that you become the next victim.However, if you get renters insurance, then you wouldn’t have to worry whenshopping online.
There are many other situations in which comprehensive renters insurance can come in handy. For instance, if someone steals your bike from the bike stand or your laptop from a café that’s right outside your house, then you can get reimbursement from the insurer.
#5. It Includes Personal Liability Cover
Personal liability lawsuits are pretty common in the US and there are many situations in which someone can sue you. For instance, if your pet dog bites someone who has come to visit you, or if someone gets injured while they are in your home, then they can file a lawsuit against you. However, if you have renters insurance, then chances are that it will take care of everything from the legal fees to the claim settlement costs.
Investing in Renters Insurance is Smart
Renters insurance is an inexpensive and wise investment for your own protection. At the price of just two pizzas, you can cover damages worth $10,000 or more. Think about it. Would you risk losing all your savings just so you can save a meager amount every month?