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8 Things You Need to know About Renter’s Insurance

8 Things You Need to know About Renter’s Insurance

Renters insurance is crucial if you are a tenant, whether your landlord requires it or not.


renters insurance policyInsurance may have been created all because of Murphy’s law…. It has been the bane of most people’s existence. So many things can go wrong, and there are so many tenants who don’t feel that renter’s insurance is a necessity because they do not fully understand what it can do for them.

Here are some key points and why you should always have it.


#1 –  It is so inexpensive!! Typically renter’s insurance is under $20 a month, often times even being much less than that.


#2 –  The property owner’s policy does not cover ANY of your personal items and belongings. No matter who was responsible for what happened, nothing that you personally own will ever be covered. It ONLY covers the actual structure and property. It used to be more common where if there was landlord neglect, tenants could possible receive a reimbursement for their items, at value, not at replacing cost, but the chances of that are much less.


#3 –  The property owner’s policy does not cover your liability. Their policy covers nothing if your friend slips on your kitchen floor, or your dog bites the mailman. If your tub overflows and leaks into the unit below and ruins your neighbors new 70” TV, you will be responsible for that. Having a great renter’s insurance is a good solution to reducing your out of pocket expenses. Your claim and deductible is often a heck of a lot lower than replacing something like a 70” TV.


#4 – Underestimating your stuff’s worth. If you really sit down and add up all your personal belongings and what it would cost you to replace it all, the typical household has an average of $25,000, but realistically it’s more along the lines of $35,000 – $50,000, especially as technology keeps increasing and becoming more expensive. Your cell phone alone is about $1,000. If you love shoes and clothes… that could really increase that amount as well. How much was that designer handbag you had to have? How much could you really replace with your current savings and income?


#5 – Choose the right kind policy. There are renter’s insurance policies called cash value, and policies called replacement value. Cash might sound tempting, but have you ever tried to sell a leather couch or high end bedroom set on Craigslist? You probably paid thousands for it, and had to let it go for $500. Cash value is not your friend when it comes to rental policies. Make sure you have a policy that will pay you what it would cost for you to go buy that bedroom set or leather couch brand new right now, or the date of which the incident happens and accounts for inflation.


#6 – All renter’s insurance is about the same. Aside from the point above, most renters policies are really standard and are all about the same. Just make sure you find a policy that covers what you want, and has a deductible you are comfortable with. The variances for those are pretty small so it may come down to ease of payments or if you need to pay for it monthly, or quarterly.


#7 – Dog owners beware – not all policies cover dog bites so if you do have a pet, make sure your policy includes coverage for those kinds of incidents.


#8 – Spoiled Groceries anyone? How much food do you have in your fridge right now? If that fridge goes out… and they all seem to go out on a Friday night, you could have a fridge full of rotten food! Your renter’s insurance policy will more than likely cover all of that food and allow you to buy new groceries and eat out until a new fridge can get delivered!

Other than that, it really is a no-brainer to have renter’s insurance! For a few dollars a month you can have HUGE coverage in case of life happening! You won’t regret it when saves you thousands!

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