Misconceptions About Renters Insurance

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Many people do not realize the benefits of having renters insurance. Little do they know that renters insurance can actually save them money in the long run.

Depending on the kind of coverage one has, renters insurance usually covers your personal belongings from theft, loss or destruction in the event of a fire, storm, etc.  Renters insurance can also protect you from legal and medical expenses associated with accidents that occur within your home.  Contrary to popular belief, renters insurance can be fairly inexpensive however, it is important to weigh the factors to help determine if it is right for you.

Here are some common misconceptions about renters insurance:

Misconception #1: Renters insurance is expensive.

As one might expect, policy premiums will vary between individuals, providers, location and types of coverages needed. On average, renters can expect to pay around 50 cents per day, approximately $20 a month, to protect your personal property!

One way to save is to bundle your renters insurance with your auto. Insurance providers offer multi-policy discounts to customers who add renters insurance onto an existing insurance package. Bundling your policies can decrease overall monthly insurance costs.

Misconception #2: Most people don’t feel they have enough belongings to insure.

One reason individuals avoid renters insurance is they don’t think they have “enough” belongings to insure.  Another reason? They don’t think their belongings are worth the coverage. It is not uncommon that people underestimate the value of their possessions however, they would be surprised to see how much it would cost to replace all those items. We tend to forget that possessions are accumulated little by little, over a long period of time and that can really add up.

Take full inventory of your belongings before making a decision as to whether or not you want renters insurance.  Take into account not only the high ticketed items like appliances but also, the small ticketed items such as rugs, books, dvds, etc.  On average, a 2 bedroom renter has at least $30,000 worth of possessions! Along with evaluating how much your belongings cost, it is important to consider how much you personally value those items. In some situations, how much you care about your belongs may override cost in your decision to take out a renters insurance policy.

Misconception #3: Renters insurance only covers my personal belongings.

Accidents, such as pipes bursting in your apartment may damage another tenants’ property. Repairs can be costly. Renters insurance can help cover those unexpected costs. Your renter’s policy will typically cover the damage up to your liability limits. This liability protection can cover medical or legal expenses if someone trips or injures him/herself in your apartment. Double check coverages on your renters policy.

Misconception#4: My landlord will cover property damages.

On occasion, landlords recommend specific insurance companies to their tenants because many times, a landlord switches their homeowner policy to a rental policy after acquiring a rental unit.  More frequent than not, insurance policies that landlords hold typically only covers the structure but not the contents within.

If the landlord owns appliances or other items within your rented home, he or she is not responsible for damages they inflict on your personal property. Say you have a hundred dollars worth of clothes in a washing machine that the landlord owns, but it damages your clothes.  If you wanted coverage for the damaged clothes, the landlord would not responsible for it. That would come out of renters insurance.

Choosing Renters Insurance

Renters insurance coverage can be tailored to each individual. As with any insurance policy, premiums are based on many factors like age, location, etc. But in general, there are two important areas to understand when choosing a renters insurance policy: what the policy covers and whether that coverage is actual cash value or the total replace cost. If you are looking for renters insurance, please give us a call and our customer service representatives will be more than happy to assist you in the process.  We are here to answer your questions or concerns you may have.  With that being said, we hope we were able to de-mystify some of the misconceptions of renters insurance for you.