Renters Insurance

Many renters don’t take the time to consider how much all of their personal stuff would cost to replace. It’s actually more than one might think. Taking everything into account, such as furniture, electronics, including widescreen TVs and computers, clothing, photographic equipment and jewelry, it could easily add up to huge expense if, for some reason, you had to replace it all yourself.

Renters Insurance makes complete sense, but not only for protecting your prized
possessions.

Although the majority of American homeowners are insured, according to a recent insurance information institute survey, only about 30 percent of renters had renters insurance. In other words, nearly 70 percent of renters don’t have a shred of protection against fire, theft or other unexpected event that could damage or destroy their belongings.  In addition, the National Association of Insurance Commissioners estimates the average renter’s policy, depending on location, contents, and size of the rental unit, costs between $15 and $30 a month. That’s a small price to pay for peace of mind, especially if it means replacing everything you own.

Whether you’re a college student living in an off-campus apartment, a young family starting out or a retired couple downsizing to a rented condo, one thing is clear – most renters are uncertain about their need for renters insurance.

To simplify what a typical renter’s insurance policy includes, we’ve listed a few types of available coverages below:

•   Personal property – Protects your belongings in case of a covered loss, such as fire or theft.
•   Liability protection – Protects you financially in case someone is injured in your home and sues you.
•    Reimbursed living expenses – Protects you by reimbursing additional costs incurred from staying someplace else after a covered loss makes your home uninhabitable.
•   Guest medical protection – Protects you by paying medical expenses for someone who may have been injured in your home.

Unfortunately, most renters without insurance mistakenly believe their landlord’s or leasing company’s insurance policy covers their stuff and often find out when it’s too late that this is not the case. Your landlord’s insurance covers his building, including your rental unit…not its contents as a result of a fire or water damage.

Some may argue they don’t feel their stuff is worth that much, so why bother? If you take into account, even a small fire you accidentally cause can run the damage price tag into the thousands of dollars for replacing basic items…not to mention being possibly held liable for causing the fire…you may want to reconsider.

When shopping for renters insurance, an important factor to check for is whether your policy offers full replacement cost coverage or simply actual cash value coverage. With full replacement cost you’re paid enough to go out and purchase a new TV or computer of the same kind, even if it’s an older model. On the other hand, actual cash value only reimburses you for what the insurance company feels the item is worth, taking into consideration its age and depreciation. Needless to say, full replacement cost is the preferred of the two.

In the end, the decision is up to you…but, ask yourself – what’s your peace of mind worth to you?

Whether you’re shopping for renters insurance or already have it…make sure you’re getting the best rate. Why not call Royal Insurance Agency today to get a free renters insurance quote?