Why you need renters insurance
You finally found the right place to rent! Now you need to get a moving truck, decide how to organize all your furniture, update friends and family with your new address; call the power company, phone company, and your local insurance agent. Whether you rent a house, an apartment, or a condo, you will need to purchase renters insurance. This is why…
If you don’t have renters insurance and another of your roommates lights a cigarette, falls asleep, and a fire breaks out that destroys your clothing, furniture, electronics, and other personal effects, it doesn’t matter how you arranged the furniture. However, he will be thankful that he bought insurance. His landlord is only responsible for the home itself, not his personal property within. So while your insurance will cover the building, you won’t have coverage for all of your belongings without a renter’s policy.
In addition to providing protection for your personal property, renters insurance would help you find alternative housing while your apartment is being repaired, as well as provide coverage for additional living expenses.
Renters insurance also provides protection against theft and vandalism. Be cautious and take a close look at your policy. Most policies have limitations on jewelry, collectibles, fine art and antiques that are attractive to thieves and you may need to purchase a personal articles policy to ensure you have adequate coverage.
Liability protection is also provided through renters insurance. If someone trips and falls in your apartment and you decide to sue them, this coverage will help protect your assets. The medical portion of the policy will also cover your injuries.
When looking for a policy, make sure it’s an HO-4. Here is a list of covered risks.
• Fire or lightning
• Windstorm or hail
• Burst
• Riot or civil concussion
• Aircraft
• Vehicles
• Smoke
• Vandalism or malicious mischief
• Heist
• Damage from glass or security glazing material that is part of a building
• Volcanic eruption
• falling objects
• Weight of ice, snow or sleet
• Home utility water related damage
• Damages due to electrical surges
Now that you know why you need coverage, let’s talk about the price… How much will all that coverage cost? Believe it or not, the cost of a renters policy could be as low as $10 per month! That seems like a bargain considering the alternative. The price will ultimately depend on how much coverage you need and where you live. Talk to your agent and he can provide you with an inventory checklist to get you started. Make sure you buy enough personal property protection. You can always offset the price by taking a higher deductible.