Why Renters Insurance?

December 12, 2012

Renter’s insurance is one of the last things most renters think about when faced with moving.
However, you really should consider it. Many people incorrectly assume that their landlord’s insurance policy will cover their belongings in the event of a loss. It will not. Fire, theft, windstorms, roof and plumbing leaks and many other occurrences can damage your personal property. Therefore, to protect yourself and you valuables, renters are encouraged to obtain renters insurance.
Another concern that people have is that renters insurance is simply too expensive. However, a typical renter’s policy runs around $150 to $250 a year, depending on where you live and how much personal property you wish to insure.
In addition to replacing belongings in the event of a fire, theft or broken pipe, renters insurance also has a liability component, which may be the most important part of a policy. Liability insurance will protect you and your family from lawsuits for bodily injury or property damage caused by you or even your pets. A dog bite can be extremely expensive for the pet owner. Your liability coverage would protect you from costs, including legal representation, incurred by your actions.
Renter’s insurance policies may also cover additional living expenses. You may not own a lot of possessions, but what if your apartment is damaged to the point that you have no place to live? Additional living expense coverage will pay for hotel bills, temporary rentals, restaurant meals, and many other expenses you incur while your home is being repaired or rebuilt.
When comparing policies, it is important to understand the coverage limits as well as the terms of the policy. Ask whether the Personal Property coverage is for Replacement Cost (New for Old) or Actual cash value (depreciated value). Ask how much additional living expenses coverage each policy offers and what the limits are. Most renters policies use $100,000 as the base liability limit but you can increase this to $300,000 usually for very little extra premium.
Contact our office to get a quote and personalized advice regarding your renters insurance needs.