Is Renter’s Insurance Worth It?

Renter's insurance photo

Many people do not have renter’s insurance because they don’t realize the value of it.  Assuming your landlord’s insurance will cover you in the event of a disaster is dangerous, incorrect, and potentially financially devastating.  While your landlord’s insurance policy covers the home that he or she owns, it usually will not cover a tenant’s belongings or expenses.  Once a landlord stops living in a home and decides to rent it out he or she will typically change the insurance to only cover the structure of the home.  This means you and your belongings will not be insured if something should happen.

What Does Renter’s Insurance Cover?

Renter’s insurance can be incredibly helpful because of all the things that it covers.  Many landlords will even require that tenants carry renter’s insurance, specifically including liability insurance.  Don’t stop at the bare minimum.  A comprehensive renter’s insurance policy can provide liability coverage and so much more.

Personal liability insurance for renter’s can provide much needed coverage for items such as dog bites and lawsuits.  If you have a pet that suddenly attacks someone and causes them injury, your renter’s insurance may cover you in the event of a lawsuit.  It can also pay for the injured parties medical expenses.  Liability coverage helps offset your costs in the event of an unforeseen legal issue.

Renter’s insurance also helps with the cost of replacing your belongings.  While it is not pleasant to think about you could lose everything in your home due to theft or unforeseen disaster.  Flooding, fire or even a strong storm can damage your home and everything in it.  Make sure that you have coverage that can pay to replace your items.

Offsite storage may also be included in your renter’s policy.  A robust renter’s insurance can include coverage for your items in an offsite storage facility.  If something were to happen to your belongings your policy could cover up to 10% of the value of your items.

Travel disasters can also be covered.  If your personal belongings are damaged while on vacation, as long as the damage was caused by something covered under your policy, your renter’s insurance will pay to replace your items.  A pickpocket or thief may steal your wallet or laptop out of your hotel room.  Your policy could cover these items.  If your car is stolen while you are traveling, your renter’s insurance can come to the rescue.

Another expensive part of unforeseen disasters is displacement.  If you were unable to live in your home due to an event that is covered under your policy, for example fire damage, water damage or hazardous mold, your renter’s insurance may pay for the ensuing expenses.  Living in a hotel long term and boarding your pets can get expensive quickly.  A short-term rental could conservatively cost $100/night.  If you are displaced for just a month, you could be looking at a $3000 bill just for a place to stay.  Renter’s insurance could take care of these expenses for you (http://www.huffingtonpost.com/elizabeth-pietrzak/what-does-renters-insuran_b_6843948.html).

Your vehicle may also be included in your policy.  If you have items in your vehicle that are stolen, your renter’s insurance policy may pay to replace them.  If you routinely leave items such as a laptop, cell phone or any item of value in your vehicle, your renter’s insurance policy may save the day if any of these items were stolen.

How Can Renter’s Insurance Prevent Financial Catastrophe?

If you lost all of your belongings in a fire or other unexpected event, could you afford to replace everything?  Even if you think the answer is yes, I challenge you to go through your home room by room and estimate what it would cost to replace each item.  Start a running tally and don’t forget to include the small stuff.  Many people are tempted to only consider high ticket items when considering insurance but this doesn’t take into account the actual cost of what it would take to replace everything.  If you tallied the value of items such as your silverware, linens, bedding, picture frames, furniture you might be surprised at how quickly these items add up.

Get Renter’s Insurance Today

Whether you are in college and just getting started on your own or have an established career and family, if you are renting you should seriously consider renter’s insurance.  Renter’s insurance can provide liability coverage as well as financial solvency in the event of a disaster.  Your belongings can be protected and you can have peace of mind for a relatively small monthly or annual fee.  Renter’s insurance can be quite affordable and offers you coverage in many different situations.

Contact Gebhardt Insurance and protect yourself and your financial health with a solid renter’s insurance policy today.  We will work with you to make sure you get an insurance policy that provides the coverage you need at a price you can afford.

 

 

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Steve Gebhardt

Gebhardt Insurance Group was honored by AAA Insurance for being the top New Policy Agency in Arizona for 2013 and achieving the "Emerald Achievement Award."
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