Why it’s important to have either renter’s insurance or homeowners insurance.
I believe if you’re thinking about renters or homeowners insurance you’re seriously adulting. I know this is the last thing you want to read about, but when your really expensive flat screen tv suddenly stops working, you’re going to wish you had renters insurance or when a pipe bursts in your bathroom and causes major water damage, that homeowners insurance is going to come in handy. Many people, including me, think nothing life changing could ever happen to them until it does and you spend months in disbelief. The good thing is you are here ready and willing to learn, and I am here to simplify these two insurances to you.
I’ve always lived in a rented apartment, and whenever there was damage, we would call the superintended and then he would call management, and 6 months later the problem would be fixed. The reason for this is because all of the issues were usually related to the building, so it falls on them and their insurance to fix it.
So why do you need renters insurance? Well lets put it this way if you flip a house upside down, everything that falls and is damaged is covered by renters insurance, everything that stays in its place would fall under “homeowners insurance or “landlords” insurance.
I never knew about renters insurance until now, and I wished we had it living in NY. Many things happened over the years like we were burglarized (three times), the tv broke, we burned the exhaust hood, etc. All of these repairs came out of pocket; if we had renters insurance, they would have covered it all, after the deductible which could be $500-$1000. In the end, these are all minor things, worst case scenario would be if there was a fire and we lost everything, then our insurance would replace it all.
After getting renters insurance, I found out there are other things they cover that like if your laptop gets stolen at a cafe or if someone gets injured at your house. Of course, do your research and know every insurance is different, and so are monthly payments which could start as low as $15 monthly.
A homeowners insurance will pay for damages to or destruction of your structure (which means the home itself) and your belonging’s. Unlike renters insurance, you can’t usually decline to purchase a policy. If you borrow money from an institution, they will require you to get a homeowners policy. This notion explains why our building paid for any repairs we needed, and we didn’t have to come out of pocket. I am still learning about homeowners policies as right now, I only have renters insurance, but I do know some key points.
- You can save on your monthly payment by getting your auto and homeowners policy from the same insurer.
- Homeowner’s policies aren’t cheap, but you can lower your monthly rate by keeping a high credit score, installing safety devices (some insurers will give you a discount if you take precautions) and raising your deductible, so you pay more in the event that you need to use your insurance but you pay less every month.
That was pretty much a synopsis of a small part of adulting, hope you were able to get the most of this article. The process can sometimes feel overwhelming, but just know you are not alone. If you have any questions or comments, feel free to reach out to me via email or Instagram.