When considering home insurance, most homeowners don’t hesitate for a second. The story isn’t quite the same for renters, though. According to a poll conducted by ORC International, 95 percent of homeowners have home insurance, while just 40 percent of renters opt for renters insurance. While this number has been rising rapidly in the last few years (up from only 29 percent in 2011), renters without insurance often believe that it’s not that important because it is unlikely to happen or that the landlord’s insurance will cover everything.
Many renters typically assume that landlords will cover any damages caused by fire, windstorms, theft, or vandalism, but, in reality, a landlord’s insurance only covers what the landlord owns, not what you own. This essentially means that in a damage-inducing event, their building is covered, but your furniture and belongings aren’t.
To protect yourself and your belongings when you rent, it is important to get renter’s insurance. It will cover you and your most important belongings. Additionally, it will cover the cost of other living arrangements if your home becomes damaged or uninhabitable.
While some leaseholders may think renter’s insurance is too expensive, you are likely to pay only around $100-$200 per year. With monthly payments between $10-$20, you can protect all of your personal property. Talk with your banker or insurance agent for the best kind of coverage.
What else should you know about renter’s insurance?
- Flooding and earthquakes are not usually covered, but you can purchase separate policies to cover those hazards. This often goes for water damage as well, so seek out a policy if you want coverage for faulty plumbing and leaking pipes.
- You can add your roommate to your policy for double coverage, just make sure to inform your insurance agent.
- Consider getting specific coverage. For example, if you are a techie working from home, make sure to appropriately cover your technology.
- When it comes to payout, you can choose between actual cash value (a depreciated value) or replacement cost which would cover the full replacement value.
Nearly half of American renters spend 30 percent of their income on rent and utilities. It is important to protect your assets— don’t be a cautionary tale. If you’d like more information on renters insurance options or quotes contact your current insurance provider or Steven Scott Management’s preferred insurance provider, Assurant Renters. For additional information on any Steven Scott Community, visit us online at www.steven-scott.com.