More than two-thirds of renters are uninsured for fire, natural disaster, and burglary.
But the fact is more apartments are broken into than houses, and apartments also burn. Worse yet, if a fire starts in one unit it will often affect nearby flats. A careless neighbor could be the cause of your next burnt hallway.
Your landlord’s insurance won’t cover you
While landlord’s insurance policies cover the building and any unattached property they have stored there, that coverage does not extend to a tenant’s belongings.
If your things are stolen or destroyed by a fire or a storm, you’ll have to replace them yourself. Additionally, you’ll be footing the bill for any temporary living expenses if your apartment is uninhabitable for a period of time.
You may think your stuff is worthless; it’s not
Look around, you do have things of value: Your computer, tablet, mp3 player, clothing, furniture, DVD collection, to name a few.
Most people have thousands of dollars of belongings and if a fire rages through their apartment, it’s all gone. And renter’s insurance comes with liability protection against lawsuits by visitors injured in your apartment.
Renter’s insurance is affordable
Premiums can be as low as a few hundred dollars a year, or less than $20 a month. Give us a call and we can take you through the steps of determining what you need.
We can walk you through the process of how to decide what type of policy is right for you, such as:
- Explaining the differences between actual cost and replacement cost.
- Helping you decide which deductible is right for your budget.
- Explaining policy add-ons such as floaters to cover valuables above the coverage limits of a standard policy.You will have to decide on one important part of the coverage: actual or replacement value.If you have expensive items like electronics that are subject to depreciation, you should consider replacement cost coverage. This type of policy reimburses you for the current cost of buying a new equivalent item.
However, if you had an “actual value” policy, the computer would be valued as a used item. So, a 3-year-old computer would be covered for its initial cost minus depreciation.
Of course, replacement cost coverage is more expensive. It’s up to you to decide which type of coverage fits your needs and budget.