When moving into a new apartment, there are a lot of costs involved, from the move itself to new furnishings and everything in between. The last thing you want to do is spend even more money, especially when your landlord is forcing you to get renter’s insurance. Should this be an acceptable thing, or should renters be allowed to make the choice for themselves?
Should Renter’s Insurance Be Mandatory?
Here’s a true story that happened to one of our team members, Diane. She moved into an adorable apartment in West Philadelphia as a graduate student. Since the apartment building was owned by a company that required renter’s insurance, she bit the bullet and paid for coverage for all of her belongings in the apartment, not thinking much about the whole ordeal past the up front cost.
Fast forward to four months later: it’s winter break, and she is visiting her parents in Miami. She receives a phone call from the apartment company, asking if she is okay and whether she was affected by the fire. “What fire?” she asked, heart beating intensely. Apparently there was an electrical fire in the building, and everyone living in it was being prematurely evicted.
All of a sudden, she found herself needing to get back and find a new place to live and sift through her things to see what was salvageable. She was very lucky, since the fire took place on the ground floor and her apartment was on the third floor. Many of her things were able to be saved. However, big things like a bed, mattress, couches, and rugs all had to be replaced. She never thought she would be so grateful to the company that had forced her to buy renter’s insurance a few months earlier.
Renter’s Insurance Is Beneficial To Both Landlord And Tenant
The reason why the company insisted was in order to minimize their cost in case of an emergency, but everyone benefitted in the end. Renters insurance gives a tenant protection for their property if it is damaged or stolen, in the case of a natural disaster, and also helps keep insurance premiums low.
When it comes to cost of renter’s insurance, there are plans for everyone. There are even plans that start at just $8 per month, but the final cost depends on size of property, the belongings, and also the property’s location.
Renter’s insurance cover personal property in the case of theft, loss, and any other destruction. There are even policies that can cover the property that is stolen or damaged away from the unit. This is especially useful for expensive electronics.
Investing In Renter’s Insurance Is Always A Good Idea
It also gives you liability coverage in case a guest is injured at a tenant’s unit. Reasonable medical expenses are covered, as well as coverage again lawsuits.
If a tenant’s apartment becomes inhabitable, like in Diane’s case, renter’s insurance helps cover the cost of temporary housing. When Diane found herself without a place to live, her renter’s insurance helped pay for a hotel to stay at while looking for a new apartment.
Renter’s insurance is always a good idea for those “just in case” events for both the landlord and the tenant. You never think it will happen to you, but when it does, you’ll be extremely happy that you invested a little bit up front.
