Is Renters Insurance a Good Financial Choice?

Are  you planning to move out? This is often an exciting idea that makes you  plan in anticipation all what you and your family are going to do when  getting a new place to live. However, you must make sure to buy renters insurance to avoid that such joyful planning will not become a  nightmare. Contrary to many people’s assumptions, home insurance is usually in place at the moment to move out, but it only protects the  homeowner and not the possessions of the new tenants. Discover why  renters insurance is truly a good financial choice for you when moving  to a rental property.

Understanding Home Insurance and Renters Insurance

Because both home insurance and renters insurance protect the same  place at the same time, these types of insurance are often confused with  renters insurance usually ignoring the fact. Home insurance protects a  house against damages in the infrastructure or possessions inside the  property that belongs to the homeowner or landlord and is often referred  to as hazards insurance in many leasing contracts. Renters insurance,  on the other hand covers exclusively the possessions that tenants take  into the property, including damage or loss based upon specific clauses  in the policy.

Renters Insurance Is Worth The Cost!

Many people are unwilling to pay the cost of a renter’s insurance  policy, but this coverage is a good financial choice. If you have  valuables or belongings which the price you could not pay again to  replace it, a renters insurance policy will pay whether such possession  was damaged by natural or accidental issues, or lost regardless if your  assets were stolen or lost during the move.

Renters Insurance Saves Your Money

In addition, a renter’s insurance policy can pay the money that third  parties may claim as your liability, as an example, when a guest visits  your new home and accidentally falls. In cases like this, your renter’s  insurance policy will pay the medical expenses and possible lawsuits  filed against you resulting from such accident.

When Renters Insurance Is Not A Good Choice

There is probably a sole condition when renters insurance is not a  good financial choice; when you do not have any assets to protect or  people visiting. Sometimes people move to a new place with so little  belongings and so cheap that might result in more cost to pay the  premiums of a renter’s insurance policy than replacing the damaged,  stolen or lost items, while the risk to have a guest suffering an  accident may never occur. Keep in mind that the medical coverage that  this policy carries only protects people inside the rented property, but  that do not live there.

Making it a Smart Financial Choice

Eventually, people who may fall in the above situation can change  their lifestyle or their perception about buying belongings to make a  rented place their own home while they can afford the cost to become  homeowners. If this is your own case, keep in mind that once you start  buying assets and receiving visitors, it is time to buy renters  insurance as well because it is the best way to protect yourself and all  those items that you are purchasing with your hard-earned money.