The house isn’t yours – so you don’t need insurance, right? Wrong. Here are four things to know when considering renters insurance.
Purchasing renters insurance to protect your items may seem like an unnecessary expense, especially to many college students venturing out on their own for the first time. However, the importance of a renters insurance policy becomes abundantly clear if you experience a theft, fire, or accident in your rented home or apartment.
Whether you are a longtime renter or just starting out on your own, renters insurance policies provide important benefits and coverage. If an accident destroyed your residence (and you did not have coverage), you would be responsible for replacing everything you own that was damaged. Plus, if someone claimed you caused an injury at or damage to the rented property, you could be at risk for a lawsuit or paying for damages if you do not have adequate insurance protection.
With the help of Travelers Insurance, here are four things you need to know when considering whether or not to purchase renters insurance:
1. Renters Insurance Provides Off-Premises Coverage
Renters insurance does more than cover the cost of lost or damaged possessions in your residence. There is coverage if your bicycle is stolen from a bike rack at the park, or if your laptop is taken from your car while you are at the supermarket.
2. You Can Be Compensated if You Are Forced to Relocate
Most renters’ policies provide additional living expenses coverage if your home becomes uninhabitable due to an event such as vandalism, theft, fire, or water damage from home utilities. This benefit usually includes the cost of living expenses, up to your policy limits.
This coverage typically is limited to 30 to 50 percent of your insured personal property. For example, if your belongings were insured for $100,000, the limit on additional living expenses would be $30,000 to $50,000, as outlined in your policy.
3. A Home Inventory Can Determine How Much Coverage You Need
Before you decide how much coverage you need, it is important to know how much it would cost you to replace your possessions. You can calculate replacement costs by conducting a home inventory and checking with your insurance representative to make certain you are fully covered.
4. You Can Reduce Your Renters Insurance Costs
There are a variety of ways to reduce the cost of renters insurance. An option is to select a higher policy deductible, the amount you must pay before your insurance coverage takes effect. Increasing a deductible from $250 to $500 could create an annual savings of up to 15 percent. There are also potential benefits that come with bundling all your insurance policies (auto, life renters, etc.) with one carrier.
Here at The Feltner Group, we are independent brokers, which means we work for our clients, not the insurance companies. We are dedicated to helping you get the renters insurance policies and coverage you need at the best possible rate. Reach out to get started!