clock December 5, 2017 comments No Comments flowchart Our BlogRenters Insurance tag Liability
an apartment that belongs to people who need renters insurance

We all know that in Rhode Island, renters insurance covers your personal possessions in your apartment if someone robs you or if there’s a disaster, but did you know about these lesser-known benefits?

Hotel Costs

If you have an apartment fire you probably won’t be able to live there for quite some time. Your unit may need extensive work, including pulling out carpet and drywall, replacing electrical, and drying your apartment out with fans to avoid mold and mildew issues. Where will you live if during all of this?

Fortunately, renters insurance reimburses you for costs such as renting a hotel room or renting another apartment until your home is ready to occupy again. It may also pay for restaurant meals if you cannot stay in your rental unit.

Medical Bills For Visitor Injuries

Let’s say someone comes to your home and slips on water in the bathroom left after a shower. They slip, fall, and hit their head on the bathtub. They’re rushed to the hospital and you later discover they’re suing you for negligence. They want compensation for their hospital bills. Could you afford to pay this?

Renters insurance pays medical bills for someone injured on your premises, up to the policy limit. Policies vary, but basic policies usually cover at least $1,000 and as much as $5,000. You can buy additional coverage for a reasonable cost, too.

Damaging Property

You’re visiting friends and your 3 year old knocks over a vase. Your friend tells you they bought the vase while vacationing and it’s worth $1,000. Could you easily pay for that out of pocket?

Renters insurance provides coverage for you and your family if you unintentionally damage or destroy someone else’s property.

Lawsuit Costs

Lawsuits occur frequently, but only 41% of renters have renters’ insurance. If someone decides to sue you, lawyer’s fees and a court settlement could severely impact your finances. Lawsuits involving serious injuries could easily cost more than $100k.

Renters insurance pays legal costs and court settlements. A typical policy limit is $100k, with additional coverage available.

Dog Bites

Dog bites account for more than one-third of liability law suits and cost an average of $37,000 per bite. According to the Insurance Information Institute, “The average cost per claim nationally has risen more than 94 percent from 2003 to 2015, due to increased medical costs as well as the size of settlements, judgments and jury awards given to plaintiffs, which are still on the upswing.”

If you have renters insurance, your policy relieves you of the financial burden of medical and court costs associated with a lawsuit or settlement. Could you afford to pay this otherwise?

Borrowed & Rented Items

You borrowed your friend’s expensive tool, because you didn’t want to buy one. Someone breaks into your place and steals it, along with another tool you rented to get the job done while you were out of town for the weekend. The tools are worth $500 – now what do you do?

Without renters insurance, you’ll pay out-of-pocket. However, your renters insurance policy protects objects “in your possession,” up to the policy limit.

Renters insurance isn’t expensive. A 2017 report by the National Association of Insurance Commissioners estimates the average annual cost for most renters is around $17 a month.

If you think your landlord’s policy protects you, think again. Their insurance only covers the building, not your belongings. You need renters insurance otherwise a single disaster could mean that you lose everything.

Discuss your insurance needs with your local independent insurance agent. They can tailor your policy to your needs and budget. If you already insure with them, they could bundle your policy with your automobile insurance for further savings. You may also qualify for discounts if your home has security features.

Would you like us to review your insurance?

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