Before you decide, let’s first discuss what rental insurance covers and then we can go over the pros and cons. You may need a rental insurance policy if you’re renting an apartment or home. Your landlord’s property insurance does cover the property that you’re renting, but it’s not covering your personal belongings.  Knowing this, it’s a good and normal thing  that you’ve been looking into rental insurance. So what’s included in the coverage?

A rental insurance policy covers:

• clothes
• jewelry
• luggage
• computers
• furniture
• electronics

A rental insurance policy protects your items from the following causes:

• Explosion
• Fire or lightning
• Windstorm or hail
• Volcanic eruption
• Weight of snow, ice or sleet
• Water or stream damage from sources including household appliances, heating, plumbing, air conditioning or fire-protective sprinkler systems
• Falling objects
• Smoke
• Theft
• Vandalism or malicious mischief
• Riot or civil commotion

 

FYI: Losses caused by floods and earthquakes are not covered in standard policies, so a separate policy is required for these type of perils.

 

So should you get a rental insurance policy? As with everything else, there are pros and there are cons. These are formulated to help guide you towards a decision if you’re still unsure.

The pros:

• It is affordable. You can receive up to $50,000 of personal property damage for an average of $15.00 a month.
• You get liability coverage. If somebody is hurt on your property or your dog bites your guest, you have nothing to worry about because your liability coverage will take care of it.
• It protects your personal items outside of home. If you get your laptop stolen or damaged at a coffee shop or gym, your rental policy will help you replace it.
• Cost of living expenses are covered. Let’s say your property is damaged by a fire, where would you stay in the meantime? Your policy would help cover costs of a hotel room and additional living expenses.
• If you bundle, you can get discounts on other insurance policies (example: car, home, etc.).

 

The cons:

• The deductible. Like all other insurance policies, you’ll have to pay out of your pocket before your insurance comes in.
• Additional monthly expense. Although it doesn’t cost a lot, is this something that you can add to your budget?
• Not being informed enough on the different types of pay-outs provided by your rental insurance policy.

 

A quick glance at how rental insurance works and it’s general pros and cons can help you get started. Other factors to consider is the area that you live in and the amount of highly valuable personal items you own. Overall, the cost of protection is very well worth it if you don’t think you can afford the cost of replacing your valuable items.

 

 

 

 

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