Why Do I Need Renters Insurance

Why Do I Need Renters Insurance???

Some people mistaking think that Renters Insurance is not needed because their landlord already has insurance on the house. This can be a huge mistake. While it is very likely that your landlord does have coverage on his building, this coverage does not provide coverage for the renters stuff. 

What would it cost to completely replace everything you own, your clothes, furniture, appliances, computer, smart phone and tablet? Probably tens of thousands of dollars. How financially devastating would it be if your apartment or home were to be destroyed by fire and all of your stuff was to be gone in the blink of an eye? Where would you live? Who would help you with getting your stuff replaced, fixed or cleaned?

There is an easy way to make sure this doesn’t happen to you. Purchase Renters Insurance from your local, independent, Trusted Choice Insurance Agency. Renters Insurance usually doesn’t cost much, normally only $20-$40 per month. 

Renters Insurance protects you by covering your contents for things such as fire, theft, wind and water damage. Most policies will provide some sort of option for replacement coverage making sure your stuff is replaced with brand new items. Replacement coverage is extremely important in the case of major losses where large amounts of your contents are damaged. Replacement cost coverage can save you countless thousands of dollars that may occur otherwise due to depreciation.

There are multiple benefits to having renters insurance. Not only will your contents be covered but you will also get liability coverage for you and your family. What good is liability coverage you ask, it can be even more valuable than the contents coverage. For instance, the average renters insurance covers somewhere between $25-$75,000 worth of contents while the liability protection provided by the policy is most likely $100,000-$300,000.

Liability coverage will protect you from financial losses that can come in the way of lawsuits or other legal actions against you or your household. Say you have a guest over to your home and he or she trips on a toy that your son has left lying on the floor. After many hours of painful and very expensive surgery, your friend is released by the doctor after months of physical therapy. Liability coverage along with Medical Payments coverage of a renters insurance policy will help cover the costs of the medical bills and help protect you from legal actions associated with this type of accident.

Liability from your Renters policy can also protect you while you are away from home. Say you were at the grocery store and you were in a bit of a hurry to get your shopping done so you make it to your kids sports practice on time. If you were to come around the corner with your cart and knock poor granny over and break her good hip, your coverage will help you pay for her medical bills and could help keep you out of a lengthy legal suit.

When discussing Renters Insurance with your agent, make sure you explore the following items.

1)    How much contents coverage should I have?
2)    Does this coverage give me replacement cost of my stuff?
3)    What deductible should I choose?
4)    How much liability do I need?
5)    What optional coverage items should I consider and how much do they cost to add on? Water backup, Identity Theft Protection, Earthquake or Special Scheduled Items like Jewelry or Antiques.
6)    Can I get a discount for having more than one policy with the same company? (Bundle, Multi-Policy/Multiple Policy..Whatever that company calls it.)
7)    How reliable is this insurance company if there is a claim? Are they easy to work with?
8)    What part will the insurance agent and the local agency play in the claims process?
9)    Will everyone in my home be protected? (This is of major importance if all the people in the home are not related. Roommates and live-in significant others for example.)

If you fall into any of these categories, you may need to consider more than your standard Renters Insurance policy.

1)    You operate a business from your home.
2)    Your residence is ever part of a sublease or shared use like Airbnb, GuestHouser or used as a vacation rental.
3)    If your contents are used for professional purposes like tools for your work or musical instruments for your break out band.
4)    Contents you have somewhere else like a storage unit or a friend’s basement that add up to more than 10% of your contents coverage limit, may need to have extra or extended coverage.

Nearly everyone that rents a place to live, whether it be an apartment, a house or a mobile home, will need some type of Contents Insurance / Renters Insurance Coverage. Even though Renters Insurance can be a very basic form of insurance protection, it is best to have the advice of an insurance professional.

Please contact Taylor & Associates Insurance Agency for more information. 

Mae Ceniza