There are more renters today than at any other time over the past 50 years. According to United States Census data reported by Pew Research, the numbers show the increases in both rental units and homes for rent have increased greatly. Young people in their 20s and 30s are still generally the largest group that are renting, but numbers show that seniors are also beginning to see the benefits of renting.
Renters are increasing in number for several reasons. The struggle to qualify for a bank loan for a mortgage has gotten more difficult, especially recently with the unemployment numbers skyrocketing. Renting may be one of the only options for young people who are saving money to make a down payment. Other renters point to amenities, the neighborhood, lease terms, and unit sizes as reasons they continue to rent.
Rent and Insurance
Aside from enjoying amenities, better neighborhoods, and convenient lease terms, many renters enjoy that much of the responsibility of maintaining the dwelling falls to the landlord, including insurance for the structure itself.
The landlord’s insurance, however, does not extend to a renter’s personal belongings such as appliances they brought to the dwelling, clothing, electronic devices, furnishings, and personal keepsakes. A fire, flood, storm, smoke damage, or break in could damage an apartment or rental house. While the landlord would be responsible for the structural repairs and renovations, the individual renter would need to replace or repair their own property within the unit. This could be extremely costly especially after a catastrophe.
Since the landlord or property management company is not responsible for the renter’s possessions, many people who rent choose to purchase renters’ insurance.
What is Covered in Renter’s Insurance?
Standard renter’s insurance covers not only the possessions in the renter’s unit, but also covers a renter’s liability in the event that a visitor is injured on the premises. That means that not only are your furnishings and expensive electronics covered, but if a friend trips and falls in your unit, your renter’s insurance can cover the medical bills.
By adding renter’s insurance to your already existing car or personal insurance policy, you will then be protected at home whether something occurs that falls to the responsibility of the landlord or if it is something you will be financially responsible for.
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