You’ve followed your rental guide, and now you’re ready to move into your new place. Your furniture is in place, and the utilities are hooked up. Everything is starting to feel like home. But have you considered getting renters insurance? Surprisingly, 56% of renters do not have renters insurance.
Renters insurance is more important, accessible, and affordable than you might think. In fact, in some cases, landlords require renters insurance. But many renters are unsure about what renters insurance covers and how much coverage they need.
What Does Renters Insurance Cover?
In a nutshell, renters insurance covers what you own. While most landlord insurance only covers the building and damages due to negligence, you are responsible for protecting your personal belongings. Without renters insurance, you might have to bear the financial burden of a loss on your own, including the cost of a hotel stay if you can’t live in your apartment while repairs are being made.
Renters insurance provides coverage for the most common causes of property damage and loss, such as theft, vandalism, and fire. It’s essential to have this coverage to ensure that you are protected against the unexpected.
Protect Your Stuff
Most renters underestimate the value of their belongings. On average, a person has $30,000 worth of belongings that are probably not covered by their landlord’s policy. Just take a moment to add up the approximate cost of your computer, television, stereo, furniture, jewelry, and clothing. If a fire were to devastate your apartment tomorrow, would you have the funds to replace it all?
Additionally, renters insurance covers more than just your personal property. An average policy can include up to $100,000 in liability coverage. This means that in the event of a covered loss, your insurer will help cover the costs if you’re held responsible for injuring another person or damaging someone else’s property. This coverage applies whether the incident occurred within your residence or elsewhere.
So, be sure you have coverage against the unexpected with renters insurance. Get a free quote now.
How Much Renters Insurance Do You Need?
Renters insurance is relatively inexpensive. According to NerdWallet, the average renters policy costs about $15 per month for up to $30,000 in personal property coverage. That’s solid coverage for less than the cost of a few cups of coffee a week.
Here are some tips to help you determine how much renters insurance you need:
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Complete an inventory of your possessions: Make a list of your personal possessions, including their age, purchase price or current value, and other identifying information. Consider taking pictures or video of your property as well. This inventory will help you determine how much personal property coverage you need.
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Check for discounts: Many insurers offer significant discounts if you combine multiple policies with their company. Consider purchasing auto insurance along with your renters policy to take advantage of these discounts. Besides auto insurance, life, business, and other plans may also qualify for discounts.
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Choose the right deductible: A deductible is the amount you pay out of pocket for a covered loss before your insurer pays the rest. Consider the out-of-pocket costs you’re willing and able to pay when selecting a deductible. Lower deductibles mean higher premiums, while higher deductibles mean lower premiums.
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Assess your liability: Renters insurance includes liability coverage that protects you if someone injures themselves in your home or if you accidentally damage someone else’s property. The typical renters insurance policy offers $100,000 in liability coverage, which is often sufficient for most renters. However, if you frequently entertain guests or if your assets exceed this limit, consider a coverage amount equal to the total value of your assets.
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Supplement coverage if necessary: Keep in mind that your policy may exclude certain perils, limit coverage on certain items, and may not cover a business in your home. If you have special insurance needs, discuss extending limits or adding separate policies with your agent.
Finally, keep in mind that your rental property’s location will play a role in determining your renters insurance rates. Prices vary based on your state, city, and neighborhood. Renting in a safer area with low crime rates or near a fire station might save you money. Additionally, the safety of the rental property itself can affect rates. Older, unrenovated buildings might pose higher risks of electrical and plumbing issues, resulting in higher rates. However, something as simple as installing smoke detectors and fire extinguishers in your apartment can lead to real savings, even if you rent an older property.
FAQs
1. Is renters insurance required by law?
Renters insurance is not required by law, but some landlords may require it as part of the lease agreement. It’s always a good idea to check your lease and discuss it with your landlord.
2. What happens if I don’t have renters insurance?
Without renters insurance, you would be responsible for covering the cost of replacing your belongings and any damages or injuries you may cause to others. This can result in significant financial burden and stress.
3. Can I get renters insurance if I live with roommates?
Yes, you can get renters insurance if you live with roommates. However, each roommate will need to have their own individual policy to ensure their personal belongings are covered.
4. What is not covered by renters insurance?
Renters insurance typically does not cover damages caused by floods or earthquakes. It’s important to review your policy and consider additional coverage if you live in an area prone to these types of disasters.
5. Can I cancel my renters insurance at any time?
Yes, you can cancel your renters insurance at any time. However, it’s advisable to have a new policy in place before canceling the existing one to ensure continuous coverage.
Conclusion
Renters insurance is an affordable and vital form of protection for your personal belongings and liability. By determining the right amount of coverage for your needs, you can rest assured knowing that you’re financially protected against unexpected events. Take the time to evaluate your possessions, consider any special insurance needs, and choose a policy that suits your budget and circumstances. With renters insurance in place, you can enjoy the comfort and peace of mind that comes with knowing you’re covered.
