Renter’s insurance is something every renter should have. It is inexpensive, depending on the amount you take out and your area you will likely pay between ten to twenty dollars a month for the coverage. It will protect you from theft and loss from fire.
Most people have been robbed or know someone who has been robbed. This policy will protect you from paying for everything out of cost. This is one of the items you should never cut from your budget. It only takes one phone call to your insurance agent and you will be covered.
What Renter's Insurance Covers
Your renter’s policy will protect you if you are robbed, or if your apartment burns down. Additionally, renter’s insurance includes liability protection. This protection will cover medical expenses if someone is hurt inside your apartment. This insurance will help you to replace items that are damaged or stolen. The liability insurance is also nice because it will protect the assets and savings that you have acquired. Just like with car insurance you can save money by shopping for a new policy every few years.
- Electronics up to the policy limit
- Clothing
- Furniture
- Jewelry up to the policy limit
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What Isn't Covered
It is important to realize that a renter’s insurance policy does not cover everything. Most insurance policies will not cover a flood caused by rain. You will need to purchase an additional policy to cover flooding. This is especially important if you live in a floodplain area. Many apartments will let you know if they are located in a floodplain. You need to be prepared for a flood if you live in a flood-prone area. Sometimes flooding can be a result of poor irrigation or landscaping, as well. If this is a serious problem talk to your landlord and have them address it.
- Items beyond the limit listed on the policy (there are generally limits on electronics and jewelry)
- Some storm damage or flooding damage
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How Much Coverage You Should Purchase
You need to determine the amount of your insurance policy. When you do this, you should carefully consider the costs of everything you have. If you are robbed, you will likely only need to replace jewelry and electronics. If you are the victim of a fire, then you will need to replace your clothing, your furniture, and other personal effects in addition to your electronics.
In order to determine the amount of coverage you need, you should make an inventory. As you make new purchases, you should add the items and a copy of the receipt to the inventory. You can do this in the cloud or with a safety deposit box. You should have enough money in your emergency fund to cover the deductible on your insurance policy.
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If you are not sure how much personal property you have and would like a personal property inventory sheet contact us today and we can send you a form that will help total up your assets. It is surprising how fast the value of all your belongings add up and quite often most insureds are not covered to the full extent they need to be.