It doesn’t matter if you rent or own, insurance is essential to ensure your personal belongings are protected in the case of an emergency or disaster. According to Realtor.com, only 37% of renters have apartment renters insurance, however, the low number doesn’t mean that it isn’t a valuable layer of cushioning to have. Since it’s only an additional $15 a month, on average, it’s an affordable investment. In other words, sacrificing a single Starbucks order each month could cover this cost. With everything that goes into moving, make signing up for renter’s insurance on the same list as the utilities, because it’s just as important.
What is Rental Insurance?
Often known as tenants’ insurance, renter’s insurance is a policy that protects your personal property in a rented apartment, condo, or home from unexpected circumstances such as theft or vandalism, fire, sewage backup, and other types of damage. Apartment rental insurance is a huge added benefit for tenants, as it helps make your living situation less stressful in the case of something happening that could cause damage to either the property or your personal belongings. Some national rental insurance providers include:
• Liberty Mutual
• Allstate
• State Farm
• USAA
• American Family Insurance
• Nationwide
• Amica Mutual Insurance
• Farmers Insurance
• The Travelers Companies
What Does Rental Insurance Cover?
Paying for renter’s insurance is an extra layer of protection in the case of an emergency or disaster. Although each insurance company offers different policies and protections, they will typically cover the following:
Any additional living expenses such as loss of use if the apartment were to become inhabitable due to a covered peril (fire, vandalism, theft, smoke, lightning, wind, hail, mold, and water damage). This ensures your budget will remain the same if you did have to relocate to another apartment.
Personal liability is covered if you’re held liable for injuring someone else or loss of their property.
Medical payments are covered up to a few thousand dollars if either you or visitors were injured on your property.
Personal property damage would be covered in value up to $20,000 to $30,000, depending on the amount of coverage you choose. If your personal property is either damaged or stolen, the renter’s insurance will cover the loss up to your selected limits.
It’s important to note that most insurance companies will offer additional add-on coverage based on what you would like protected. When researching different renting insurance providers, review their offerings and select one that best fits your needs.
What Does Rental Insurance NOT Cover?
Unfortunately, insurance doesn’t cover everything, and that pertains to your automotive or mortgage insurance in addition to the renter’s insurance.
Here are some things that you may want to make sure your renter’s insurance policy covers with your area in mind:
• Earthquakes, floods, or landslides
• Pest and/or rodent infestations
• Sinkholes
• Pet damage
• Additional property that isn’t your own, like your roommate’s, for example.
Although we wish we could control mother nature’s extreme weather events from occurring, there are some things that can be prevented to an extent, which may not be covered by apartment renter’s insurance such as kenneling your pet when you leave and ensuring you have routine preventative pest control.
Why You Should Get Rental Insurance
Here’s why you should invest in renter’s insurance:
Affordability: By adding only $15 to your monthly expenses. It is wise to weigh the benefits that you get from this relatively low monthly cost to the total cost it would be to replace all your lost items if you didn’t have renter’s insurance.
Makes it easier to pay medical and legal bills: If you undergo any medical treatment or seek legal advice, apartment renter’s insurance can help cover a portion of it.
It helps protect your savings: The last thing you want to do is empty your savings fund by not investing in insurance. Having that additional peace of mind is a significant reason alone why renter’s insurance can help you in the long run.
Bundling can save you more money: Although it may seem like adding another insurance plan will cost more money if you bundle with the same provider it can end up saving you more.
Fulfill a leasing requirement: Sometimes, your apartment may require you to have renter’s insurance before moving in.
Looking for an Apartment in Chicago?
Since 1996, TLC has been dedicated to showing what apartment living in Chicago can be, by ensuring you’re protected every step of the way. Whether you prefer urban or suburban living, we have a property that you can call home. Visit our website to view one of our 30+ communities and compare their rates.
Have a question about one of our properties? Reach out to us today at info@chicagorentals.com to learn more information.
