Renters Insurance: Who Really Needs It?
When you’re renting, you have fewer worries than if you owned a condo or a home. Whether it’s an apartment you live in or you’re renting a condo or house it’s a good idea to have affordable renters insurance coverage, even if it’s not required. Very rarely do people not own at least a couple of thousands of dollars worth of stuff so why not get that money back if something unforeseen happens? While you may think of being a renter as a more relaxed and responsibility-free existence in comparison, you should think about how much your belongings would cost to replace and also about how much of a liability risk you are. Yes, you can be the target of lawsuits.
What Does Renters Insurance Cover?
Imagine you invite a few friends over and one of them falls down on the way to the bathroom or what if your dog bites a visitor in your home? Both situations leave you open to a lawsuit. Both situations are covered by renters insurance. If you thought you were off the hook because you own no assets, you’re wrong. Your car is an asset, and wages are easy enough to garnish. If you don’t have renters insurance, your landlord’s insurance will not cover either of these incidents. Consider the consequences. Other common claims you can file with a renters insurance policy are for belongings stolen out of your car or luggage lost at the airport, bus station and train station. Also, what if your home is uninhabitable because of a fire? Do you want to pay for hotel stays until the damage is fixed or do you prefer that renters insurance covers it.
How Much Is Renters Insurance?
If you think you’re saving each month (really -- how much will it cost $12?), you’re actually putting yourself at risk for thousands of dollars if you don’t buy cheap renters insurance. Also, chances are that you can bundle your renters insurance with your car insurance and pay even less than $12 a month. Prices vary according to location but the average cost of renters insurance premiums are rarely over $50 a month. Despite the cost effectiveness of having renters coverage, about half the population of renters still doesn’t carry it.
How to Get Cheap Renters Insurance
Your best bet is to call an insurance agent you trust who knows which companies offer the best renters insurance rates (remember to ask about bundling auto with your renters). This is the most cost-efficient way to get the best rates. If you don’t feel like your agent truly has your back, contact us by visiting here so we can pair you up with the right match.
Another way to bring down your monthly premiums is to choose a higher deductible. Remember, however, that if you choose $1000 deductible over a $250 or $500 one, you’ll pay much less each month but you’ll need to have that $1,000 to get coverage for any loss at all, even if it was less than your deductible amount.
If you choose actual cash value coverage over replacement value coverage, you’ll also pay less in premiums each month but you will also get less if you had to file a claim. You’ll get the depreciated value for your things (not the sticker prices for what you paid for them years ago) as opposed to the amount you’d have to pay if you bought all that stuff new today. Do not choose the less expensive option of the two and then expect more from your insurer.
Also, check for any safety features in your rental home or apartment unit. Smoke detectors and security systems usually earn you discounts on your renters insurance policy.
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Renters insurance is one of the most underrated types of insurance out there. It’s also one that many people regret not having invested in until it’s too late. A renters insurance policy can protect you and your belongings in situations that you may not have ever anticipated.
Imagine the ceiling caving in; a major leak upstairs or a fire! If something were ever to go wrong you may not only have to replace some valuables in your apartment, but your place may become uninhabitable for a length of time too. What would you do if you had to stay in a hotel for a couple of weeks?
You may not remember everything that got destroyed and you won’t be compensated for it either. Think about what kind of damage a really bad water leak or fire will do. Your things may become unrecognizable and you may not list everything properly when you start the claims process. Or worse yet, what if the insurance company requires proof of ownership?
Really, the best way to determine which policy is right for you is to see how often you think you may need to file a claim. Because an expensive deductible is more difficult to pay, you should not choose the highest deductible if you know you’re prone to break-ins or if the apartment complex you live in is poorly maintained (a faucet leak upstairs from you may destroy all your property).
Comparison shopping usually results in a savings of several hundred dollars a month!
Here is what you should keep in mind If you rent an apartment, condo, townhome or single-family home.