For many people, owning a home is the ideal to strive for. Entire generations study and work for years to achieve their dream of owning a home. But while there is something to be said about homeownership, it isn’t necessarily the only valid option. For an increasing number of people, renting a home is an equally feasible alternative. In fact, an argument could even be made for the benefits of home rental versus homeownership. Of course, just like homeownership, there are many factors to consider when you opt to rent a home instead of purchasing one. You will need to have a way to protect yourself and your family, as well as the things you own. Renters’ insurance, such as those provided by MD Renters’ insurance, is a great way to do that, and you will find that the peace of mind that it gives you is indispensable.
Renters’ insurance in the United States
The importance of MD renters’ insurance comes to the fore when you realize the rate at which rentals have risen over the past several years. Homeownership in the U.S. is actually at its lowest point in more than five decades. And yet, only 40% of people renting their homes have renters’ insurance. In comparison, as much as 95% of homeowners have some form of home insurance.
Why renters’ insurance is essential
Why is renters’ insurance so necessary? Do you need renters’ insurance if your landlord already has property insurance?
Most renters don’t realize that the landlord’s property insurance doesn’t cover the renter’s belongings. In most cases, coverage extends only to the structure and not any of the renter’s belongings in and around the property. So if anything happens that causes damage to your property, you are out of luck. This is why renters’ insurance is essential.
What else does renters’ insurance cover?
One other thing to realize is that renters’ insurance covers more than just your belongings. Among other costs that renters’ insurance will pay for are:
1. The cost of emergency accommodations
If a disaster such as a fire, flood, storm, or earthquake occurs, you could find yourself out of a place to stay. And if you have to live in a hotel while you get back on your feet, your costs can add up pretty quickly.
Renters’ insurance will cover your hotel expenses in such a scenario, sparing you from the additional burden of living expenses after a disaster. This should make it easier for you to transition back to everyday life.
2. Cost of treatment/medical care for guests
Have you ever had guests stay over at your house and have them experience an injury due to a loose floorboard or a slippery floor? If so, you have probably had to pay all or some of the costs of medical treatment.
Renters’ insurance can cover you for such incidents, providing you financial assistance for the resulting medical bills. Most such plans provide anywhere from $1,000 to $5,000 for the medical expenses of guests injured on your rental property.
3. Damage caused by your children
Children can be very active and energetic, and many seem to have a knack for getting into the most interesting predicaments. Unfortunately, this could lead to broken items or property damage, which you will probably have to pay for. And if the item in question is expensive, the cost can be quite prohibitive.
Renters’ insurance provides liability coverage for property damage or injuries that your children may cause. Even if insurance doesn’t cover the full amount of a costly item, the partial coverage would still come in handy.
4. Legal cost of a lawsuit
Renters’ insurance will also be useful if an injury occurs to someone on your rental property. If the injured party decides to sue, renters’ insurance will cover the costs of legal proceedings and possibly even the court awards. Coverage usually ranges from $100,000 to the limits of the policy.
5. Injury caused by your dog/s
Some renters’ insurance plans will cover injuries to other people caused by your dog. If your dog bites or attacks someone, renters’ insurance will provide some degree of coverage whether the incident occurred off the property or on the premises.
These are only some of the conditions for which renters’ insurance could provide some coverage. Make sure to check the plan’s details and consult with your insurance company representative to determine the extent of your coverage.
About Moody Insurance Worldwide
Moody Insurance Worldwide, a division of Moody & Associates that was founded in 1914, is a leading provider of risk management programs and insurance coverage to individuals and businesses across the East Coast. We write all sizes of businesses, with technical expertise in many key industry areas, and provide personal insurance programs for estates and high net worth individuals. Our licensed, experienced commercial account managers can work with you to determine the coverage that you need at a competitive rate. Contact us today at (855) 868-0170 to learn more about what we can do for you.