In certain expensive real estate markets, places like Dallas, San Francisco, Manhattan, or Los Angeles (to name just a few), renting a home often makes absolute financial sense. In addition to absurdly high housing prices in these specific locales, there is the added advantage that renting presents, namely freedom. A renter can keep his or her housing options open and have some wiggle room. The big step of buying a home often means investing practically all of your capital, (immediately with the down payment and for up to 30 years with a loan), in one single investment. If you are the kind of person who, either out of necessity or to satisfy wanderlust moves frequently, renting a house or apartment makes big time sense.
Homeowners insurance is a no-brainer and is required by lenders. However with renting, it seems so many simply do not take the time or effort necessary to ensure that their assets are protected. Since what is rented is still a home, there are often valuable items in a rented abode. Items like your grandmothers wedding ring, that favorite piece of signed art, or maybe the top-of-the-line laptop computer you just bought, you know the one, you always play with it while sitting on your fabulous new (and expensive) leather couch. In such a scenario, purchasing renters insurance is yet another no-brainer.
This kind of insurance is tailor-made to provide a covered renter with financial compensation for the loss of belongings in the event of some kind of accident, say a fire or a tornado. The coverage usually has a very helpful aspect in which a person, who is put out of his or her home due to damage of some kind, can get help in paying for temporary housing. What a life saver that could be! Several weeks in a nice hotel while your home is being repaired could really be nice. There are also provisions in which, if necessary, you are provided with a security deposit for a new apartment. Check with your agent to discover the various options available in having renters insurance.
This coverage is available for those who rent almost everywhere. Sometimes it even comes with the rent paid. Otherwise the insurance is available for a reasonable and modest sum. It may be a good idea to purchase your own rental insurance policy that is specifically transferrable to any new rental location without having to buy new insurance coverage.
What normally occurs when one needs to utilize his or her insurance is the following: The policy holder files a claim in the aftermath of some event, say theft. The company that provided your policy then investigates the claim to ensure its validity and to what extent the coverage is needed. Then a check is issued to the claimant. It can be that simple.
Rental insurance is very important for nearly all renters. Though you may not have many belongings in your place now, this policy could prove invaluable if you are confronted by a natural disaster and need to be housed in a new location quickly. For a modest amount you are given priceless peace of mind knowing that you will not be homeless and in crisis.