More than half of all home renters in the United States (57 percent) do not possess a renters insurance policy, often due to misconceptions that steer them down the wrong path. We all understand the value of homeowners insurance, but many renters assume that they don’t need renter’s insurance because they do not own their own residences, or that they don’t own enough “stuff” to need insurance. This could not be further from the truth. Renters insurance is every bit as valuable and necessary as homeowners insurance, and it’s far more accessible and affordable than a homeowners policy.
Renters insurance typically provides coverage for the following situations:
With this in mind, let’s clear up some common misconceptions surrounding renters insurance and its value:
Let’s say a fire burns your apartment to the ground. Your landlord’s policy will cover the cost of rebuilding the structure and any injuries you incurred during the fire, like being hospitalized for smoke inhalation. But, it will not cover the cost of replacing any of your belongings, furniture, electronics, clothes, appliances, etc. that are destroyed in the fire. Your renters insurance policy, however, would cover all of those costs.
Let’s say your bathroom floods causing water damage in an adjacent apartment. In this situation, your renters insurance policy would not only cover the cost of repairing damage to your apartment, but the cost of damages to your neighbor’s apartment as well, up to the policy limits.
Now let’s say a friend visits, trips over a loose rug, and falls and breaks their ankle. Your rental insurance policy covers the replacement of your possessions, but it also includes liability coverage which will cover medical and other costs in the case of an accident inside your rental apartment or home. Without renters insurance, you’d be paying these costs out of pocket.
According to the Independent Insurance Agents and Brokers of America, you can acquire a renters insurance policy with $30,000 of property coverage and $100,000 of liability coverage for about $12 per month. That translates to about 40 cents per day.
Weigh that cost against replacing everything you own in your residence, out of pocket and the value and peace of mind that renters insurance affords you is obvious.
The insurance professionals at Foundation Insurance Group are always here to assist you. We’ll review your current renters policy, answer your questions and concerns, and partner with you to protect your property. We know your belongings are important to you, so we’ll help you protect them from the worst this world can throw your way.