Renters Insurance (and why you need it)
Do I Really Need Renter’s Insurance?
Many renters feel that renters insurance is an unnecessary expense. While you may not have a lot of expensive things, if you take the time to write down an list and an estimated value of everything you own, you might be surprised.
Furniture, clothes, dishes, electronics, jewelry, appliances, and even cosmetics: think about how much it would cost to start with nothing and replace everything you own. That’s exactly what you would have to do if you lost everything in a fire or natural disaster.
What Does it Cover?
Renters insurance covers your personal belongings, or “contents”, against damage and loss, including theft, fire, and smoke. Your contents insurance may provide actual-value reimbursement for your items, or, for a slightly higher premium, may cover your full replacement cost, useful if most of your belongings are older and worn.
Your rental-home or apartment insurance will also typically cover the cost of temporary housing if your home should be uninhabitable for a period of time following a disaster. Don’t assume that your landlord will cover this cost for you, as that will depend upon the cause of the disaster and the landlord’s coverage.
Finally, your policy will provide liability insurance should you be held responsible for a visitor’s injury. As medical bills can quickly accumulate, this coverage is beneficial, if not essential.
Is It Expensive?
In 2010, U.S. tenants spent an average of $185 per year for their renters insurance policies. At only $15 a month, most Americans spend more than that on pizza.
Does renters insurance sound like a worthwhile investment? Give us a call, send us an email, or drop by our office. After all, we don’t want to just sell you insurance. We want to help you make informed choices on one of the most important decisions of your life.
First Baldwin Insurance