Renters Insurance Guide - Made Easy
Who gets renters insurance when moving into a new apartment? *crickets* Yeah, no one.
In the era we are living in now, renters insurance cost much less than the regular morning coffee we stop for before work. Question is, why does only one-third of American’s have insurance?
I guess we could blame it on the fact that renters insurance doesn’t sound “attractive” to the average person renting, it doesn’t give much presences to the fact that it protects your stuff or the damages that you may cause to others.
Even the ones who have renters insurance that covers their valuables from damages don’t think it’s worth the low monthly payment.
Well, guess what! It does.
Let’s break it down in plain English because renters insurance coverage seems to be something that isn’t explained correctly so it’s not understood to its fullest. Most are not aware of the value it brings to the table for such a low monthly cost. Knowing you have it will give you peace of mind.
Now we are going to jump deeper into the ins and outs of renters insurance starting with what it is, what is covered and not. Basically, all you need to know about it.
What is renters insurance?
Many insurance companies explain it as protecting you from fires, dog bites, you know. But is that really all they are covering? Doesn’t sound appealing at all. Being “covered” by insurance doesn’t mean it’ll prevent these mishaps, but instead, it is giving you the assurance that you will be reimbursed when these things just happen to go south.
Renters insurance is a safeguard for you and your belongings. Alongside with any loss or damage due to fire, water destruction from a pipe bursting, and other misfortune events. It is also able to cover temporary living expenses if the situation calls for it.
Myths about renters insurance coverage:
Before we jump into what’s covered and what’s not, lets us briefly state that it is essential to eliminate some common myths about renters insurance coverage.
Your coverage is applied to anyone in your household related to you by blood, marriage or adoptions, it’s not quite enough for your roomie though – they have to get their own policy.
Your landlord’s insurance covers the place plus any furnishing/appliances they may own inside, but it does not include any of your stuff.
Living with your parents? Their insurance might not cover your stuff unless they have enough coverage for your belongings along with theirs.
In your mind, you may think “Oh, I don’t have much.” Are you forgetting your phone, laptop, maybe even a bike? It is all worth covering.
Mentioned above, it is about the same price as your morning coffee. Prices start from as low as $5/month.
Renters insurance even covers your stuff when you’re on-the-go, isn’t that just great for us busy people.
It is quick, easy and fast to get covered!
What does renters insurance cover?
So, the standard renter’s insurance policy will cover these three main areas:
Here we go:
1. Personal property
This coverage helps you recover the cost of lost or damaged items in different situations.
Standard policies cover fire, lightning, windstorms, hail, vandalism, theft, freezing damages from aircraft or cars and even riots. But, those are just a few.
Let’s say, there is a fire in your home or if someone breaks in and takes your tv, phone, and camera, you’re covered. The stove, microwave and even the furniture that belongs to your landlord are not covered under your policy.
It is quite easy to add extra coverage for other valuables such as expensive jewelry, fine art, watches, and additional electronics, plus much more. All valuables may need appraisals or proof of purchase, it simple to add them to your insurance policy at a low additional cost.
Let’s make this easy:
You’re at the library, you set down all your belonging to save your spot and use the restroom. You come back and it’s all gone, the panic kicks in and you fiddle around accidentally knocking over the coffee up you set down and now it’s all over a bystander’s laptop and books... oops.
Lucky, if you have renters insurance, both your stuff and the damage that was caused to the bystander’s laptop is also covered in most cases.
2. Temporary living expenses
Imagine an electric outlet sparks a fire which forces you out of your apartment. You have no choice but to get a hotel, but guess what, renters insurance covers that. Some may even give you extra cash for food and laundry expenses. Making a bad situation better.
3. Personal liability & medical bills
Renters insurance also covers legal fees and medical expenses, you might not have known that but now you do!
Debating on hosting a house party? You only live once, do it.
If you’re sued after your friend slipped on a spilled beer and breaks his leg, your insurance policy may cover the costs to get out of that headache. Your liability coverage will kick in for both medical and legal fees.
But always remember: once they leave your place you are not liable so don’t let them drive drunk.
In addition to that, let’s backtrack to the electric outlet spark fire if it reaches your neighbor’s apartment the damages should also be covered by your policy.
Big question, what isn’t covered by renters insurance?
Unfortunately, life isn’t doesn’t always go our way and these little annoying things that happen aren’t covered:
Your power, water or heat going out in your condo or apartment in the dead of winter or the heat of summer
A place to stay when there are bedbugs in your place
Natural catastrophes such as floods and earthquakes
So sorry! But we cannot prevent Mother Nature from her duties.
How to get started?
These four simple steps will save you money and time in the long run.
Take 2 minutes to walk around your apartment and take a video of everything you’d like to insure.
Make a list of your expensive items and/or electronics and basically just estimate how much they cost.
Create a quick estimate for bulk items such as clothing
Add all of it up and that’ll give you an idea of how much coverage you’ll need.
It is best to round up to the nearest $10,000. So, let’s say you estimated $18,000 worth of valuables, you should choose a personal property coverage of $20,000.
Overall, renters insurance has its massive benefits for all that is insured. Low monthly payment and peace of mind, what more can you ask for?