Buying renters insurance to protect your belongings may seem like an unnecessary expense until you experience a theft or fire in your rented home or apartment and lose some of your most treasured belongings forever. Whether you’re a longtime renter or starting first, renters insurance policies provide important benefits and coverage. It would be up to you to replace everything you own if a fire or similar incident destroyed your home and you had no renters coverage. Plus, if someone claimed you caused an injury or property damage, without adequate insurance protection, you could be at risk for an expensive lawsuit and paying that person for his or her damages. As you consider purchasing insurance for renters, here are four things you need to know:
1. Renters Insurance Provides Off-Premises Coverage
Renters insurance does more than cover your home’s cost of lost or damaged property. If your bicycle is stolen from a bike rack in the park or your laptop is taken from your car while you’re in the supermarket, coverage will be provided.
2. You Can Be Compensated if You’re Forced to Relocate
Most renters policies provide additional coverage for living expenses if your home becomes uninhabitable as a result of an event such as vandalism, theft, fire or damage from home utilities. Usually this benefit includes the cost of living expenses up to your policy limits.
Typically, this coverage is limited to 30 to 50% of your personal property insured. For example, if your property were insured for $100,000, as outlined in your policy, the limit on additional living expenses would be $30,000 to $50,000.
3. A Home Inventory Can Determine How Much Coverage You Need
It is important to know how much it would cost to replace your possessions before you decide how much coverage you need. By conducting a home inventory and checking with your insurance representative to make sure you are fully covered, you can calculate replacement costs.
4. You Can Reduce Your Renters Insurance Costs
There are a number of ways to lower the cost of insurance for renters. An option is to select a higher policy deductible, the amount you have to pay before taking effect your insurance coverage. Increasing a deductible from $ 250 to $ 500 could generate up to 15 percent annual savings.
You may also want to consider purchasing from one carrier all of your insurance policies. For example, you receive additional savings when you bundle Travelers ‘ auto and renters policies.
Sources: 1 https://www.ohioinsurance.org/who-needs-renters-insurance-all-renters-do/ 2 http://www.dfs.ny.gov/consumer/homeown/homeown_006_renters.htm3 https://www.travelers.com
This article is for general information only and isn’t legal or insurance advice. Coverage depends on your policy and carrier.
