Renters insurance is a low cost way to protect your belongings from loss due to a number of potential perils such as fire, theft, water damage as well as others. You might be surprised to learn that less than 50 percent of renters actually take out this coverage.
Why Many Renters Pass On Coverage
Why would a renter not protect themselves with a policy? One reason is the wrong assumption that the landlord’s policy with cover them. In fact, a landlord policy protects the landlord for a covered loss to the building but does not cover tenants for their personal property.
Another major reason is that many renters feel their belongings are not worth much, so why pay for a policy to protect them? What some people fail to realize is that their personal property may be worth much more than they think. Renters policies reimburse covered losses on a Replacement Cost Basis and not the current market value of any particular belonging.
Take a TV for instance. Say you have a 10 year old big screen and consider it essentially worthless today because of it’s age. If that TV is lost due to theft, fire, etc., the insurance company will reimburse on what that same size TV costs today. So something you think is only worth $50 would be replaced at maybe $500 or more.
Now, when you add up all of your belongings such as furniture, electronics, clothing, housewares, kitchen appliances, what you thought wasn’t worth much may actually be worth thousands of dollars at replacement cost. Let’s face it, if you lose all of your personal property in say a fire, those items will need to be replaced.
Loss of Use Coverage
Besides personal property coverage, another big benefit of a renters insurance policy is it’s Loss of Use coverage. This protection can be a financial savior in the event you are temporarily unable to live in your home due to a covered loss, or even if you have to find a new home due to a total loss of the building.
It covers the difference in cost between your current rent and the cost for you to rent at a new temporary or long term home. You also may incur additional costs for a storage unit, increased utility costs, meals, laundry, commuting costs, pet boarding, and more. These additional costs can be reimbursed through your Loss of Use Coverage.
It also provides a safety net in case you are suddenly thrust out in the cold without anything but the clothes on your back due to an occurrence such as a fire. It’s assuring to know that you can call your insurance company and they will immediately help to get you out of the cold and provide the necessities you need right away, when you need it.
Renter policies also include liability coverage. It protects you, if through negligence or accident, you cause injury to others or damage to their property.
For example, if someone is injured in your home and sues you for their injuries, you are covered up to the liability limit you carry on your policy. Most common liability limits offered are from $100,000 to $1 million.
As you can see, there’s a lot of value in a renters insurance policy. At an average cost of between $100 and $300 per year, it’s a cost effective way to protect your belongings, protect against loss of use of your home, and protection against being sued for accidental injury or property damage to others.
If you have any questions regarding available auto, home and business insurance options, please contact us, we’re always glad to help. The NY Insurance Hub serves Albany, Schenectady, Troy, Latham, Cohoes, Watervliet, Clifton Park, Saratoga Springs, surrounding Capital Region areas and all of New York State from NYC to Buffalo.