11 Aug Why Do You Need Renters Insurance in Illinois?
Renters insurance, also known as tenants insurance, is a policy that protects your personal belongings as a tenant. It is similar to homeowners insurance but offers relatively limited coverage. Renters insurance excludes coverage for the dwelling and structure of the house.
Here are some of the reasons why you should consider taking out renters insurance in Illinois.
1. Renters Insurance Is Less Expensive
Although renters insurance is similar to homeowners insurance, it is less expensive. This is because it offers less coverage than the latter. As a renter, you are in charge of what happens to your personal belongings. A renters insurance policy helps protect your belongings against theft, fire, and other unforeseen damages. It also covers the costs of medical bills if a visitor gets injured in your home.
2. It May Be Required for Lease Agreements
Illinois residents are not legally required to purchase renters insurance. However, most property owners will require that you purchase one before signing for a lease. This is because the landlord will not finance the repair or replacement of your property in the event of a disaster. Taking out the right type of renters insurance will cover several liabilities including lawsuits, or damage you do to other tenants’ properties.
3. It Is Different from Landlord Insurance
Your renters insurance does not cover damages to the building and structure of your home. Instead, your landlord is required to take out a separate policy to cover such damages. Your renters insurance is what covers you if anything happens to your personal belongings, thus minimizing your out-of-pocket replacement/repair costs.
4. ‘Sharing’ a Policy with a Roommate May Not Be Ideal
As tempting as it may seem, sharing a renters policy with a roommate is not usually a good idea. This is because a claim of damages to your roommate’s properties goes to your record and puts you at the receiving end of the loss. So it is best to take out a renters insurance policy that is solely for you.
5. It Protects Your Belongings During a Foreclosure
Sometimes certain unpleasant things might happen, resulting in the foreclosure of a house. For instance, your landlord may default on some of their bills, causing the bank to take over the property. In such situations, your renters insurance policy ensures that your belongings stay protected during the foreclosure.
6. It Pays for Temporary Living Expenses
Just like in homeowners insurance, temporary living coverage is also included in your renters insurance. This means that if you are ever in a situation where your home becomes uninhabitable, your insurance provider will reimburse you for all expenses that follow, such as accommodation fees, food, and transportation.
These are some of the reasons why you should buy renters insurance in Illinois. At Dougherty Insurance, we can help you take out the right renters insurance policy for your home. Contact us today to get started!