Wednesday, September 18, 2013

Need to Know: Renters Insurance

Renter’s Insurance…we’ve all heard the term but what does that really mean? We all insure our cars, electronics, and even our health. But when it comes to rental insurance many people are in the dark. We’re here to break it down for you and give a little insight.

Isn’t my Landlord responsible? 
Your landlord is responsible for damages to the structure, not your belongings inside of it. They may even have coverage for damages caused by a tenant. However this doesn’t extend to your personal rental space. If a kitchen fire were to start in your apartment, it’s all on you.

Isn’t it expensive? No, not really.
Actually it’s quite affordable. On average a renter’s insurance policy cost between $15 and $30 per month. Personally mine is only $12, I think that’s pretty manageable. Replacing all of your belongings in the case of a disaster will cost you much more. Better to be on the safe side.

I don’t have anything worth insuring.
Unless you live in a shell of an apartment you definitely have things worth saving. The average renter pays $200 a year in insurance. Your computer alone probably cost more than that. Accidents happen and renters insurance can cover anything from clothes to electronics. Your possessions add up fast.

What about liability?
Yes, renter’s insurance can come with liability coverage. That means if someone is seriously injured on your property you wont be stuck paying medical bills. If you have pets, like a dog, it’s wise to look into liability coverage that will also cover your pet.  Accidents like this don’t happen frequently but when they do the expenses pile up fast.

Is all insurance the same?
Renter’s insurance comes in all shapes and sizes. Consider where you live and what kinds of things you need coverage for. Live in a flood plane? Might be a good idea to have plenty of coverage. Your premium in in part determined by your zip code, but you can choose how much insurance you want past that.  This way you can make it as inexpensive as possible while still being covered.

Next time your landlord hands you an insurance pamphlet don’t sigh and think of it as “just another cost”.  Word to the wise, get insurance before the worst happens.

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