Tag: Renters Insurance

Three Reasons You Can’t Afford NOT to Have Renters Insurance

Think renter’s insurance is too expensive or not worthwhile? Think again! Too many renters neglect to get renters insurance because they think it’s too expensive or their stuff is not valuable enough to protect. Is this really the case?

According to a Rent.com survey several years ago, 60% of renters they interviewed did not have renters insurance. Many felt that it’s too expensive even though the average premium is under $20 a month. THat is less than what you’d spend on coffee or a night out at the movies!

Infographic: Renters' insurance, room-by-room

Here are 3 Reasons You Can’t Afford NOT to Have Renters Insurance.

#1 Your Belongings Are Worth More Than You Think

According to the USAA, new renters typically have about $20,000 worth of belongings. Look around at the possessions in your apartment: computer, bike, clothes, television, iPhone, clothes, kitchen appliances, etc. Start adding up the value of how much it would cost to replace all these items if they suddently disappeared and you will probably be surprised.

#2 Coverage doesn’t just extend to your home

Depending on your policy, renters insurance can also be extended outside of your home. If someone breaks into your car and steals your bag from inside, it is possible that your renters insurance would cover that too.

#3 It covers your neighbor’s or your roommate’s property

Most Renters insurance policies protect you from being responsible for replacing property of your roommate or neighbors in caser any damage incurred as a result of your mistake. Some policies will cover you against a lawsuit should someone hurt themselves in your apartment. This is not just limited to guests, service providers and repair individuals would be covered too in case of injury in your property.

Why You Definitely Need Renters Insurance

Tornado
(That can’t be good…)

 

No matter how prepared you are, life comes with unexpected risks. Be it by theft or a flood or a malfunctioning clothes dryer, in a moment you could face the loss of your personal belongings or your home. Can you afford to bet against these risks by not having renters insurance?

Too many people decide against renters insurance because they simply think their stuff is just not valuable enough to protect. Is this really the case?

Your stuff is worth more than you think

Look around at the possessions in your home: computer, bike, clothes, television, iPhone, that strange Angolan scarf your mom gave you. Start adding up the value of how much it would cost to replace all these items. It’s pretty high, right?

According to the USAA, new renters typically have about $20,000 worth of belongs. Not only is that a ton of money but it’s the last thing you’d want to worry about in a time of crisis.

That’s where renter’s insurance comes in.

Replacement Cost Coverage

The ideal policy is one that has replacement cost coverage over cash value.

A replacement cost coverage policy would pay out the cost of buying a new item to replace the ones you lost. A cash value policy would instead pay the cash value of the item lost at the time of its loss.

These policies mean the difference between a payment for a brand new computer and a payment based on the current cash value of your five year old computer.

Renters Insurance Computer
So, about the replacement cost coverage…

Protection against severe natural events

Did you know that the United States has more tornados than anywhere else in the world?  Ensure that your policy not only covers you for fire but also covers you in case of flooding, earthquakes, tornados, and any other nature disaster.

Coverage doesn’t just extend to your home

Renters insurance can also be extended outside of your home. If someone breaks into your car and steals your bag from inside, your renters insurance would cover that too.

It covers your neighbor’s property

Renters Insurance
Oh great, the dishwasher in 3B is acting up again.

(What would happen if your washing machine goes haywire floods into your neighbor’s apartment? Renters insurance would include a liability to cover you in these instances for any damage incurred.

Liability Insurance

This policy should also cover you against a lawsuit should someone hurt themselves in your apartment. This is not just limited to guests, service providers and repair individuals would be covered too in case of injury in your property.

Landlord insurance is not enough

Your landlord’s insurance may cover damage to the carpet or to the walls but it will not cover your personal belongings.

It’s Affordable

Renters Insurance can start as low as $12 to $15 dollars a month. A small price to pay when you consider the coverage it affords.

 

Your Stuff is Worth More than You Think! Get Renters Insurance!

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It doesn’t matter where you live, your personal belongings are important and losing them could be devastating. The responsibility for protecting all your belongings is yours — along with the cost of replacing them if disaster strikes.

If you don’t have renters insurance, you are betting against an unforeseen circumstance happening to you: a fire, theft, vandalism, water damage, a natural disaster, or worse. Is that a wager you can afford to lose?

Too many people forgo renters insurance because they think their stuff isn’t worth much. This is not the wisest choice because

a) renters insurance is usually very affordable
b) you stuff is worth a lot more than you might think

According to USAA.com, “the average renter has more than $20,000 in personal belongings. Just think about how much it would cost to replace your clothing, books, furniture, laptop computer, flat-screen TV, bicycle, smartphone and everything else you’ve accumulated over the years.”

Renters insurance differs from company to company, so make sure you compare benefits before buying.  If you already have insurance for your vehicle, start with that company and request information.

Some key features to look for (source: USAA.com):

Replacement cost coverage. This provides enough money to buy a new item to replace the one you’ve lost. That’s better than a policy that only covers an item’s actual cash value. For example, if your 10-year-old TV is destroyed, a replacement cost policy would cover the price of a brand-new set. An actual cash value plan would only give you what the TV was worth at the time it was destroyed.

Protection against severe weather and other events. Make sure your policy not only covers property damaged or destroyed by fire but also by flooding, earthquakes and other natural disasters.

Coverage of items in your car. The policy should pay for personal items if they are stolen from your vehicle.

Living expenses if forced to move. If damage to your apartment or rental property requires you to temporarily live elsewhere, renters insurance will reimburse your living expenses.

Medical expense coverage. This helps reimburse guests for medical expenses related to injuries that happen at your place.

Liability insurance. If an injured guest sues you, liability coverage can help with legal bills and will pay damages if you’re found liable for them.

Visit the U of O’s Off-Campus Student Resources and Programs page for more resources.

photo credit: Sakurako Kitsa via photopin cc