Yes, homeowners need homeowners insurance, and Consumer Reports says yes, people who rent out their homes also need insurance.
Amani Elsawah was happy to have tenant insurance. When frost hit Texas in February, Elsawah was among millions of people who lost power and suffered water damage when its frozen pipes burst.
“I was so shocked because it was literally raining in my apartment,” she said. “It was gushing so much it started flooding almost immediately.”
The damage was so severe that Elsawah was forced to leave her home.
“I had to leave my apartment and find somewhere dry and safe to go,” she explained.
Since then, Elsawah has been living in a hotel and the bills are piling up.
Fortunately, she has renters insurance, which will pay for some of her living expenses and help cover much of what she has lost.
His policy costs about $20 a month — money well spent according to Consumer Reports.
“Tenant insurance can provide an important safety net if something happens,” said Consumer Reports Money editor Penny Wang.
CONSUMER REPORTS | Why should you buy tenant insurance
In addition to helping cover damage or theft to your property and reimbursement if you are forced to move, the insurance provides liability protection if someone is injured in your home. It can also cover certain property when you are away from home, such as if something is stolen from your car.
But like any type of insurance, Consumer Reports says it’s important to check the policy carefully.
“Renters insurance is fairly standardised, although coverage may vary depending on the insurer and where you live. Bottom line: Make sure you understand your policy — what’s covered and what’s not,” Wang said.
Consumer Reports suggests getting multiple quotes to make sure the policy gives you what you need, whether it’s a low deductible, extra coverage for your valuables, or, like Elsawah, a stay in a hotel if your apartment is damaged.
“You don’t know when you’ll need it until you need it. And then once you need it, you’re glad you have it,” Elsawah said.
Consumer Reports also recommends taking a home inventory before disaster strikes. It can be as simple as taking a video of the important elements of your home. Find step-by-step instructions for inventorying your home here: Why You Should Take a Home Inventory Now – Consumer Reports
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