By now most renters realize they need renters insurance, but they still don’t have it. According to the Independent Insurance Adjusters & Brokers of America (IIABA), almost 60 percent of U.S. renters fall into this category.
Why? The most common reason cited for a lack of insurance is cost. However, renters insurance policies are typically very affordable. According to the National Association of Insurance Commissioners (NAIC), the average policy ranges between $10 and $22 per month.
Start with an Inventory
The average renter belongings are worth around $35,000 including their clothing, furniture, television, small appliances, and electronics. None of this is covered by a landlord’s insurance policy.
If you think you don’t own much or you’re ready to buy renter’s insurance, start by preparing a home inventory using a free app like Sortly. This will not only give you a total of what you own, but also provide your insurance agent with information they need to properly align your coverages.
Even if the dollar value of your belongings is low, this is not the only reason you should consider renters insurance.
Unfortunately, lawsuits occur far too frequently in our country. If someone injures themselves in your home or you damage someone’s property, including your landlords, you could find yourself caught up in one.
Luckily, a good renters insurance policy can protect you from the costs associated with a lawsuit and settlement costs, usually up to $100,000. However, if you own significant assets you will need insurance that is at least as much as the total value of your assets.
A deductible is the amount you pay before a renters insurance policy kicks in. If you choose a low deductible, you may pay higher monthly payments (premiums). However, choosing a high deductible means that you will receive less if you have a loss.
Consider an amount that you feel comfortable paying should you need to file a claim. For instance, if someone steals your laptop worth $1,800 and you choose a $2,000 deductible your insurance won’t cover it. However, if you choose a $500 deductible your insurance would reimburse you $1,300.
Don’t Go It Alone
Talk to a local and independent insurance agency like ours. We work for you, not the insurance companies.
They will take the information from your inventory and find a policy that suits your specific needs. Plus, they will balance policy cost and your deductible against your budget.
Every renters insurance policy differs and you may not need some of the extras. You may also need more coverage in some areas. For instance, if you own an expensive computer, photography equipment, sporting goods, or collections most renters insurance policies have low limits on these items. However, your insurance agent knows what to look for and which coverages best protect your belongings.
Your agent may also be able to bundle your renters insurance policy with your auto insurance, life insurance, or business insurance for a discount. You may also qualify for a discount if you have a security system. They can provide you with the expert advice you need and coverage that protects your belongings and your future.
Interested in finding out just how affordable renters insurance can be? Contact us, today.