Rental Home Insurance: The Advantages/Disadvantages Of Not Owning

Although many people believe that only people that buy their homes are eligible for personal property insurance, rental home insurance, or renters insurance, is available for people that simply rent as well. In fact, if you're renting a house, apartment, condo or any other type of personal dwelling, you are eligible for renters insurance. Renters insurance is a very good idea for most people. Renters insurance does not cover the actual structure, building or home. The owner of the home or dwelling should have his or her own insurance policy for that type of coverage. Therefore, you will not need insurance to cover the home or building itself.

But, renters insurance will cover their contents and personal belongings.

Advantages of Renters Insurance

Renters insurance, or rental home insurance, covers your personal property inside the home. Generally, it will cover all of your furniture, electronic equipment, computers, clothing, artwork and any other belongings or property inside your home. In the event your property is damaged by fire, natural disaster, or theft the policy will provide funds to you so that you may replace the lost items.

Many of today's types of electronic equipment and computers today cost a lot of money; therefore, if you lose them in a catastrophic event or due to burglary or theft - replacing them will be expensive. So, renters insurance is a great way to make sure that your investments in your own personal property are protected. Furthermore, many people don't really consider how much money they have spent on clothing, and other personal everyday use items. However, if these items over are ever lost or stolen, you will find that the replacing them is a lot more expensive than you would think.

Also, renters insurance is one of the least expensive type insurance policies available. In fact, most people can purchase a quality renters insurance policy for between $200 and $300 per year. So, for about $25 or $30 a month you can make sure that you are protected in the event of loss or theft of your personal property.

Disadvantages of Renters Insurance

One of the potential disadvantages of having a renter’s insurance policy is that is that not everyone can afford $30 a month to pay for the insurance. With today's high price of rent, car payments and basic utilities, renters insurance is simply not an option for some people.

Moreover, to actually submit a claim and use most types of renters insurance, coverage, you need to always keep receipts and records for your purchases. For some people, this becomes quite burdensome and requires a high level of organization and recordkeeping. Some people may find it simply too bothersome to keep the type of accurate records and receipts that insurance companies will require to cover personal belongings. While renter’s insurance policies are very inexpensive, many insurance companies require a lot of documentation and proof of ownership - before they will pay for items claimed to be lost or stolen.

Finally, if you purchase a policy, and make payment semiannually or annually as is the case most common, you probably won't be able to transfer the coverage if you move. Therefore, if you do purchase renter’s insurance, always make sure that you will either live in that location for longer than the period for which you paid premiums - or find a company that allows you to make monthly renter’s insurance premium payments.

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