Many individuals who are renting ask themselves "Should I buy renters insurance or is it just a waste of time?" Unfortunately, there is no definitive answer to this question. The need for insurance varies from person to person based on their particular situation. This post will help you understand what renters insurance does and ultimately help you come to your own conclusion.
To help you determine if you should buy renters insurance , there are 4 questions that you should ask… Here are the four questions to ponder:
1) Why are you considering insurance?
Identifying your needs is very important. Reluctantly buying something because someone told you to will only cause you to cancel your policy in the near future. If you are actually interested in protecting yourself and your personal property then you probably will want to consider renter's insurance.
2) What things do you need protected?
Many people do not think they need renters insurance because they don't think they have anything worth protecting. Take a look at your personal property. Your clothes, electronics, furniture, books, appliances, furnishings, jewelry, fixtures, dishes, linens, etc.... The list is longer than you think and if you had to replace all at once, it could be financially devastating. How much is this all worth to you? When purchasing a renter’s insurance policy these are the items that will be protected and replaced when you file a claim.
3) What will happen if everything is destroyed?
If your apartment building burned down, or a pipe busted destroying all of your things what would you do? Do you have the finances to replace everything yourself? Will you just live without your clothes, furniture, computer and other property? Will you just move in with someone else and live off of them until you get back on your feet? If your apartment is destroyed where will you live?
Events like fires don't just affect you. What if the fire or pipe bursting is your fault and your neighbors are affected? What if they try to sue you for damages and living expenses?
With a renters insurance policy you will be protected from all of these circumstances. Not only will you receive a check to replace your things if something were to happen, but there is also coverage in case someone tries to sue your or if you need extra funds for living expenses until you find a new place.
This is probably the most important question to consider. Really take a minute to think about what you would do if your property was destroyed.
4) Can you afford renters insurance
People want to know if it is worth it for them to purchase a policy. If you can't afford a policy or if a policy costs as much as your stuff it obviously isn't worth it. Fortunately, renters insurance is very affordable. In most cases you will probably pay less than a dollar a day for coverage. That's just spare change in the couch.
Rates vary from company to company and the amount of coverage will also affect your rates. Regardless though, renters insurance is affordable for most people to purchase.
Additional things to consider
When protecting your personally property there are a couple things to think about to ensure you are getting the right protection.
1) Your limits should match your property's worth.
Your limits are how much you can receive in a claim. Generally speaking, the higher the limits the more expensive a policy will be. If your personal property is worth $20,000 you don't want $60,000 worth of coverage. On the flipside however, if you have $60,000 worth of stuff you don't want to only have $20,000 worth of coverage.
2) Protect valuables with a floater policy
If you have valuable pieces of property (jewelry, fine arts, collectibles, etc...) they will be protected under your renter’s policy but not like they need to be. There is limited coverage for certain items so if someone breaks in and steals your engagement ring you may not get the full value. However, if you schedule these items or purchase an inexpensive floater you will be able to file a claim and get full value for these precious items.
There is a lot that goes into purchasing the right renters policy but our agents will be able to simplify the process for you. Give a call to see if you should have renters insurance.