Why You Need Renter’s Insurance

Even if you’re just renting an apartment or a house, it is still for your best interests to get a renter’s insurance policy. Unfortunately, 60 percent of renters don’t have one, and it is alarming to note that 72 percent of renters below the age of 25 are without insurance. One of the popular reasons why they don’t have one is because they think they can’t afford it. But according to the National Association of Insurance Commissioners, the average cost of a renter’s insurance policy is 15 dollars a month—a little more than the cost of a movie ticket.

Renters must have a preconceived notion that insurance policies cost a lot more. However, for just this amount of money, the coverage it can give you can save you money in the long run. In case of fire, lightning, theft, explosion, vandalism, windstorm, and water damage (excluding floods), most policies will reimburse you the difference between your additional living expenses and normal living expenses. In addition, the insurance will also cover your legal expenses if you are taken to court by someone who is injured at your home.

If you’re thinking about getting a policy but unsure about the details involved in it, here’s a guide to help you.

Find out how much coverage you’ll need. Consider the number of pricey possessions you have, such as furniture, laptops, televisions, jewelry, and determine their value. In case of a disaster, you can have lost or damaged possessions replaced up to the policy’s dollar limit by getting a replacement-cost policy. If you get a cash-value policy, you’ll get paid for only how much these items are worth when they were stolen or damaged. Thus, a replacement-cost policy is 10 percent more expensive than cash-value. To add more coverage, you can opt for a floater to your policy for other belongings, such as expensive jewelry, artworks, and other collectibles. Just make sure to have the receipts in order to be covered by the floater.

Find out the disasters covered by the policy. Standard policies do not cover floods or earthquakes so make sure to read the policy carefully to learn what disasters will be covered. You can get flood insurance through the government’s National Flood Insurance Program. Check with your insurer on how to get a separate earthquake policy.

Find out how much the living-expense reimbursements are. Renters will get help for living expenses in case they are displaced from their home as a result of damages. Find out the period of time that the insurer will cover your living expenses, or the maximum amount they are going to pay out.

Find out if there are discounts. Having a security system, smoke detectors, and deadbolt locks can help you secure a discount from the insurer. If you have good credit, are 55 or older, or have multiple policies with the insurer, it can help you get a lower premium on your renter’s insurance.

Learn more about how you can save up on insurance premiums by getting a no-obligation quote from Arnouts Insurance Agency.

 

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