Do You Need Renters Insurance?
The simple answer? Yes. Yes you do. And here’s why. Your belongings, including all of your clothes, furniture, electronics, etc. are NOT covered by either your parent’s homeowner’s insurance OR your landlord’s property insurance. Don’t think you have enough stuff to bother with insurance? Go through your place, room by room, and do an inventory of your clothes, furniture, electronics, music collection, kitchen utensils, etc. Tally up the approximate value of each item, adding on as you go. You may be surprised at the final number.
If there is a fire, the roof blows off in a storm, someone breaks in and steals all of your electronics, a crazy ex uses their key and comes in and trashes your place – in all of those scenarios, if you don’t have renters insurance, you eat the cost of replacing everything that was damaged or stolen.
If you’re already struggling to make ends meet with your first real job and paying off student loans, an unexpected financial hit can be devastating.
That’s why renters insurance makes so much sense. For a relatively small premium, renters insurance covers your property for its purchase price, minus depreciation, up to the policy limit.
Now as with any type of insurance, you could pay for renters insurance year after year and never need it. While some renters see it as a waste of money, those who end up needing it say they are grateful they had it.
Renters insurance doesn’t just pay to replace your stuff. It also protects tenants from a few kinds of liability. For example, if someone trips and falls in your apartment and incurs expensive medical bills or even a lawsuit, a renter’s insurance policy would provide coverage.
Renters insurance could also be a financial lifesaver. If you left the stove on and caused a fire, any damage caused to your apartment and the building would be your responsibility.
Renters insurance may also help play for a place to stay if your apartment is inhabitable, such as from hurricane damage or because of a major repair. Most policies place a time limit and dollar limit on what they will pay for you to stay in temporary digs.
How much does renters insurance cost? A basic policy, with $10,000 in personal property coverage and $100,000 in liability coverage, costs about $150 dollars. Even if you bump up coverage levels, most renter’s insurance policies will still run you less than $200 a year.
If you bundle your renters insurance with your auto insurance, you might get a discount, and if there are safety features in your apartment such as a sprinkler system, fire extinguishers, smoke detectors, an alarm system, a staffed front desk etc., let your insurance agent or insurance company know about them. Safety features can decrease the cost of your policy.
Like any other insurance policy, your renter’s insurance policy will have a deductible. If your deductible is $250 for example, and you suffer a $1000 loss, you would receive a check for $750.
Look around you. Do you own some expensive things, or a whole lot of stuff? What would it cost to replace it if you lost everything? For the price of a pizza a month, you can protect it all with a renter’s insurance policy.
If you want to learn more about getting renters insurance, call Dean Insurance today at 410-838-3700 to discuss details. We’d be happy to help!