Homeowners, renters, and mobile home owners: make sure you have the protection you need.
Having trouble finding out if renters insurance is necessary for you? At A Plus Insurance we help everyone come to an conclusion meant for them!
When clients ask themselves do I need renters insurance many often make the mistake of undermining how valuable their possessions are. In addition, another overlooked issue is liability: for instance, if someone is injured in your apartment, house, or duplex whether that be a friend, a neighbor, or a service person they have the right to sue you and acquire insurance in case of this incident is helpful and necessary.
Another reason why you might ask yourself do you need renters insurance is because you’re not sure whether the insurance will cover your belongings even when you’re away or out of town. In fact, renters insurance does and will cover your belongings when you’re on vacation in the event your possessions are lost due to theft and other losses while you’re not there.
Did you know that more people are renting at any point in the last 50 years? Based on data from the Census Bureau roughly 36.6 percent of households were renting in 2016, this is very close to the 37 percent in 1965. However, only 41 percent of those renting carry renters insurance.
This means that people are risking the potential of their belongings being destroyed or being sued for an injury without a safety blanket which could cause a tremendous amount of trouble in the long run. So instead of asking do I need renters insurance ask yourself what can renters insurance save me on.
Required Renters Insurance
Why do I need renters insurance?
Renters insurance covers your personal belongings, things like your furniture, electronics, clothes all the things that make up your home. Perils (or things that cause damage to your belongings) covered include fire, theft, vandalism, plumbing and electrical malfunctions, some damage that is weather-related, and other named hazards. A regular renters HO-4 policy covers losses to personal property from perils like:
- Fire or lightning
- Windstorm or hail
- Explosion
- Riot or civil commotion
- Damage caused by aircraft
- Damage caused by vehicles
- Smoke
- Vandalism or malicious mischief
- Theft
- Volcanic eruption
- Falling objects
- Weight of ice, snow or sleet
- Accidental discharge or overflow of water or steam from sources including household appliances, plumbing, heating, air conditioning, or fire-protective sprinkler systems
- Sudden and accidental cracking or breaking of steam or hot water heating systems, air conditioning, or fire-protective sprinkler systems
- Freezing of plumbing, heating, air conditioning, fire-protective sprinkler systems or household appliances
- Sudden and accidental damage from artificially generated electrical current
Furthermore, the reason you may ask why do I need renters insurance is because the landlord can make it mandatory to obtain it. many clients mistake the fact that their personal belongings are covered by the landlord policy however they are not and are only covered by a policy that you find that’s why whether you’re living in an apartment complex, house, or a duplex, having renters insurance could be beneficial. While your landlord most likely has insurance that specific insurance only covers the structure for the apartment complex and the grounds but unfortunately not your belongings.
Loss of use is another common coverage on a renter’s policy. If your unit becomes unlivable due to a covered peril, you will be given some money for temporary housing (be sure this is listed explicitly on the policy; if not, there is no coverage). So when you question yourself why do I need renters insurance keep this in mind.
Also if you own a pet, you must disclose it; odds are your premium will be higher as a result.
This is crucial to keep in mind when you puzzle over the idea of whether do I need renters insurance or not!
Do I Need Renters Insurance: What Renter’s Insurance Does Not Cover
You should know in advance when asking do I need renters insurance that there are quite a few of scenarios that the majority of policies do not automatically cover: backup of sewage into your residence, earthquakes, floods, any act that is caused by you due to negligence or intentional acts for example falling asleep with a lit cigarette and other “acts of God.”
The good news is that you may add them to your policy for an additional premium if you choose to. For those with any unusually expensive or valuable items like high-end electronic equipment, fine jewelry, musical instruments, or an essential collection of art and antiques, a rider or a separate policy may be required to cover these items. We will discuss these items during the quoting process.
How Much Do I Need Renters Insurance? And How Much Coverage Do I Need?
Whenever you ruminate over the idea do I need renters insurance remember when you apply for renter’s insurance, it is a good idea to photograph or take a video of everything you own. If you own super expensive items, make sure to write down or photograph any serial numbers that could help support your claim. You can go a step further and create a spreadsheet along with an estimate of each item’s value. Although these measures require some extra effort, you should do them for two compelling reasons. This information will determine for yourself why do I need renters insurance.
- Most people think that the total value of the stuff they own is less than it is, and this can put you in danger of under-insuring yourself. When you force yourself to sit down and look at the actual value of each item, you will get a more realistic picture of what your belongings are worth. Claim time is not when you want to find out you do not have enough coverage. This is vital to remember when you ask yourself why do i need renters insurance.
- Most insurance companies probably won’t want the inventory or the photographs when you take them up front; your documentation will be essential if you ever need to file a claim. Because you will be better able to prove the value of your possessions, the claim process will be a smoother one. Stash copies of your inventory somewhere other than your residence, such as in a bank safe deposit box, with a close friend or relative, or emailed to yourself as an attachment, or even an inventory app. Being proactive prevents your supporting documents from being destroyed along with your belongings.
Renters Insurance Rates
Keep in mind when you’re contemplating why do I need renters insurance it’s a fact that Renter’s insurance is relatively inexpensive in relation to homeowners insurance. Rates vary based on where you live and what company you chose, and, of course, on the amount of coverage and other factors, including the amount of the deductible you choose.
Deductibles can range from $500 to as much as $2,000. Just like with homeowners insurance, the higher you go with your deductible, the lower the rate will be.
Another factor will be the type of coverage you choose, replacement value, or actual cash value. Actual cash value coverage factors in depreciation (how old the item is) and pays what the item was worth at the time damage or loss occurred. Replacement value pays the cost of replacing your items with new ones. On renters insurance, it can be just a tad higher in premium than actual cash value coverage.
Like homeowners insurance, renter’s insurance will give substantial discounts for measures you take to protect your belongings. Insurers like to see things like fire or burglar alarm systems, fire extinguishers, sprinkler systems, or even deadbolt locks on outside doors. Many companies offer a discount for bundling your renters and auto insurance as well.
Why Risk It?
Still haven’t convinced yourself why do I need renters insurance. Just remember this, renters insurance prevents accidents and inconveniences from becoming bank account and budget killers.
Still skeptical? Take a look around at your neighbors. How many do you think would forget the water was running or leave something on the stove? With only 41 percent of renters carrying insurance, it is very likely they aren’t, meaning that if they cause an accident, say bye-bye to your belongings.
Whether you want to get renters insurance to protect yourself in case of an accident or you’re leaving out of town and want to have a safety net for your possessions our agents are here to get you the best rates possible!
Frequently Asked Questions About Renters Insurance
Q1: Is renters insurance required by law?
A1: Renters insurance is generally not required by law, but some landlords or property management companies may include it as a requirement in your lease agreement. It’s a good idea to have renters insurance to protect your belongings and liability, even if it’s not legally mandated.
Q2: What does renters insurance cover?
A2: Renters insurance typically covers your personal belongings, liability for injuries or damage you may cause to others, and additional living expenses if your rental becomes uninhabitable due to a covered event, like a fire or natural disaster. Be sure to review your policy for specific coverage details.
Q3: How much does renters insurance cost on average?
A3: The cost of renters insurance can vary based on factors like your location, coverage limits, and the insurance provider. On average, renters insurance may cost between $15 to $30 per month. It’s affordable protection for your belongings and peace of mind.
Q4: Is renters insurance a need or want?
A4: Whether renters insurance is a need or a want can depend on individual circumstances. While it’s not legally required, it provides valuable protection for your personal belongings and liability, which can be crucial in unexpected situations. It’s often considered a need for financial security and peace of mind.
Q5: Why do people not get renters insurance?
A5: There are several reasons why people might not get renters insurance. Some may underestimate the value of their belongings, assume it’s too expensive, or believe they’re covered under their landlord’s policy. Others may simply be unaware of the benefits and protection renters insurance offers.
Q6: Can a landlord require renters insurance?
A6: Yes, landlords can require renters insurance as part of the lease agreement. This requirement helps protect the landlord’s property and ensures that tenants have coverage for their personal belongings and liability. It’s becoming increasingly common for landlords to include this requirement in rental agreements.
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Last Updated on by Amanda Moss