Climate change is changing what it means to be a renter. Extreme environmental events like flash flooding and forest fires are more common than ever. Having renter’s insurance can help you recover from these emergencies if they happen to you.
Environment Events Levy Big Costs to Renters
As a renter, you are right to believe your landlord takes the brunt of repairs and renovations. They are legally responsible for the structural damage to your unit and the building. By law, they must restore your apartment within a reasonable amount of time.
What about everything else that makes up your home? Well, that’s your problem. You have to cover damage to your personal property or medical expenses if you or guests get hurt in an extreme environmental event.
If you can’t live in your apartment until your landlord repairs it, you also have to cover the additional living expenses of a new rental unit or hotel room.
Covering the Unexpected without Insurance
Even a relatively small flood has the power to cost you thousands of dollars as you replace tech, buy new clothes, and pay for a hotel room. If you’re lucky, you have an emergency fund that you can tap immediately.
But let’s face it— it’s hard for renters right now. With rental prices on the rise, you may not be able to save a lot of money while covering your bills.
If your emergency fund falls short, consider visiting a site like MoneyKey to learn about loans online. You can quickly learn how to use a loan by phone through MoneyKey for unexpected expenses with their simple online platform. This online tool makes it easy to understand how these personal loans might act as a safety net when your savings aren’t enough.
The Significance of Renter’s Insurance
Depending on your online loan, you may be able to pay it off over multiple weeks with interest. This term means you won’t have to worry about coming up with the money all at once. However, you aren’t just paying out of pocket for damages with an online loan — you are also paying interest and finance charges.
With renter’s insurance, you might be able to sidestep these costs entirely. A basic plan may cover:
- Damage to personal property up to a certain limit, giving you the funds to rebuild a wardrobe and replace belongings.
- Medical expenses if you are hurt in an emergency.
- Living expenses if your apartment is unfit to live in until your landlord repairs the space.
- Personal liability if you accidentally cause damages to your home.
Can You Afford the Premiums?
Of course, even a basic insurance plan comes with monthly premiums. And if you struggle to sock away savings, adding a new bill to your budget might be challenging. On average, you’re looking at about $173 a year — a little over $14 a month. You may pay more or less depending on your location and coverage.
Cancelling Netflix is an easy way to cover this cost without too much fuss. But if you can’t give up this subscription, track other expenses. Most people have unnecessary spending they can reduce to free up more cash.
While you’re at it, prioritize saving for your emergency fund. As a personal financial KPI, your emergency fund is a good litmus test of your financial stability. Besides, having a little extra cash can help cover anything your insurance can’t.