There is a very important aspect of renting that you might have neglected during your planning process. You probably know the importance of understanding a housing contract and also acknowledge the benefits of apartment amenities. However, you might not have considered the importance of student rental insurance. To neglect this crucial element would be to your detriment, though. Read below to learn why.
Rental insurance covers all your belongings as a renter. You might assume your landlord’s insurance would replace your belongings in the event of a fire or other catastrophe, but you would be wrong. Your landlord’s insurance will only cover the apartment structure, not the belongings inside that belong to you. Therefore, it is imperative that you have student rental insurance when renting an apartment.
You now know the importance of student rental insurance, but perhaps you assume your belongings aren’t valuable enough to merit insuring. If these are your thoughts, you are mistaken. According to various experts, there is virtually no scenario that exists where you wouldn’t benefit from renter’s insurance. You might feel your belongings are valueless, but you would be surprised at how costly replacing them all would be. Property expert Emily Lyons at Liberty Mutual says this about the issue, “many renters underestimate the value of their possessions and would be surprised by how much it would cost to replace all the items they have accumulated.”
Let’s say you get the fact that your belongings won’t be covered by your landlord’s insurance and will be costly to replace but still aren’t sure renter’s insurance is necessary. Well, consider this scenario, your bathtub overflows, leaking down into the unit underneath yours. If you don’t have renter’s insurance, you could be responsible for the costs associated with replacing damaged items in another unit. However, with renter’s insurance, even something like this is covered.
By now you probably see the benefit of renter’s insurance, but what about the specifics? Typically, renter’s insurance policies vary based upon what you are protecting, your location and your age. The coverage is usually created to either cover the cost of totally replacing something or to give the actual cash value of items. Total replacement cost plans will cover the cost to replace your belongings with new items. The actual cash value plan is going to pay you the depreciated value of your items. Your insurance agent will be able to point you in the right direction when it comes to setting up the perfect student rental insurance plan for you. The important thing, though, is to get rental insurance in the first place. Contact us at Douglas Heights for more information on student housing options.