You may not think about it, but renters insurance can be really important for anyone who is not a homeowner. Much like a homeowner’s insurance policy, renters insurance helps cover the cost of damage to your property inside the apartment and can cover you if someone gets hurt while visiting. Renters insurance won’t cover as much as homeowners insurance due to the smaller size of the property, and most exterior damage would be covered by the rental property anyway. For people living in Arizona, it can be an especially good idea to have renters insurance due to the unique weather throughout the state,
What is covered by renters insurance?
Many different things can be covered by renters insurance. Damage from fire, vandalism or theft are just a few common events that are covered by renters insurance policies. These might not be covered by the apartment complex or owner of the house that you are renting, so coverage like this is really up to you to obtain.
Liability coverage is also included with a renters policy. This will cover you in a situation where a friend or neighbor comes by and is injured in your home. Costs of medical care, loss of income due to the injury, and legal fees would all be covered if something like this happened. Without this coverage, these bills will be completely on you.
When it comes to replacing broken or stolen items from your apartment, each renters insurance policy has two basic options: to cover depreciated value or replacement cost. With depreciated value, you would receive the current market value for a broken or stolen item (for example, half the original price of a stolen TV set). With replacement cost coverage, the original cost would be fully covered, making it financially easier to buy a new item. This can be very helpful for people who own expensive items and do not want to replace them with a lower quality version.
How does Renters Insurance Work with Property Insurance?
Depending on the situation, renters insurance would work with the landlord’s property insurance. All apartment complexes and rented houses should have an insurance policy, but what they cover for the renter is a sort of gray area. If your neighbor causes a fire that damages the whole building, including some of your property, you may or may not be covered. It is best to speak to your landlord to see what is covered and what is not. This info may also be in the lease.
Typically, a landlord’s policy will cover the physical structure of the building and exteriors. This would take care of your door and any structural damage caused by weather, vandalism, or negligence of other renters. However, if a fire swept through the building and destroyed your belongings, these typically would not be covered by the landlord’s policy. Also, if your apartment is damaged and you need to stay overnight at a hotel, you would need to pay out of pocket unless you have renters insurance.
How much does it cost?
The cost of renters insurance is based on a number of different things. Just like homeowners insurance, if you are in a higher risk area due to bad weather, you may see a higher cost than someone else living in a different area. Usually, renters insurance policies cost around $15 to $30 per month. In addition to the low cost, you get quite a bit of coverage for a low price compared to homeowners insurance.
Why is renters insurance needed in Arizona
In Arizona, just like any other location, renters insurance is very useful. Monsoons are a common weather event in Arizona and these dust storms can bring big amounts of dirt and dust into a home, potentially damaging your stuff. Wildfires are also common in the arid areas of the state, making for a higher risk of damage to your home and the items inside. In addition to these, problems like theft and vandalism of your property could happen anywhere, and renters insurance will have you covered.
Renters insurance is not always on the mind of those renting their home, but it should be. It is a unique type of coverage policy that will take care of a lot of bills that could hit at a tough time. It is absolutely worth looking into your options when it comes to renters insurance. Speak with an insurance agent about the coverages they offer so you can rest assured that your stuff will be safe no matter what happens.