If you are researching renters’ insurance, pat yourself on the back. It’s estimated that less than 50 percent of renters carry renters’ insurance, but you are in the half that knows just how important it is.
If you’re still on the fence, though, think of it this way: if you owned a home, you would want insurance to pay for the home and your belongings if they were lost or damaged, or if a liability issue arose. While renters don’t own the physical space they live in, most would still want their belongings to be covered, and to be protected from liability risks. (It’s important to note that the landlord’s insurance generally covers only the structure.)
Here’s some good news: Renter’s insurance is an inexpensive investment, often costing less than $20 a month for ample coverage. It also provides some personal liability protection in case you are held responsible for damage to others' property or someone is injured on your property.
There are some lucky circumstances where one might not need renter’s insurance (yet). If you are a fulltime student and a dependent (under 25 years of age) your parents’ homeowner’s policy may include coverage. Most insurance carriers allow for 10 percent of parents’ content coverage to be automatically extended to other locations where contents may be, from an apartment to a vehicle. The caveat, though, is the 10 percent. Make sure student/dependent belongings do not exceed the top amount. It adds up fast!
Other details to consider:
• Renter’s insurance varies from state-to-state
• Some landlords require tenants to have renter’s insurance.
• It only protects the property of people listed on the policy. That means roommates, spouses, siblings and such will not have coverage unless he or she is listed as an additional insured.
• Some perils may be excluded, such as earthquakes or flooding.
• It’s important to know if the policy reimburses you for a new item (actual cash value) or the value of the item lost (replacement cost)?
Contact your Fortify Group agent for more information or to purchase or review a renter’s policy. We are here to help!