If you rent a house or an apartment, you need to think about insuring your belongings. In the United States nearly all home owners purchase homeowners insurance - approximately 93% are covered against loss, theft, or damage. Renters, unfortunately, are not nearly as protected. In 2021 there were 109 million renters in America, and only 57% of them were insured. While renters insurance is an additional cost in a currently tough economy, there are many benefits to acquiring it. Here we will give five good reasons to get renters insurance if you do not already have it.
The Landlord’s Property Insurance Is Not Renters Insurance
Many renters assume that their landlord’s property insurance will cover them if there is a problem in the building like a fire or a break in, but this is not true. That insurance protects against losses to the building only, not the renter’s personal property. If there’s a fire, the landlord’s policy will pay to repair or replace the apartment building or home, but any contents owned by the tenant will not be replaced.
5 Reasons to Get Renter's insurance
Affordability - The cost of renters insurance has actually decreased in the past decade. It’s much less expensive than homeowners insurance. In Michigan the average monthly cost for renters insurance is $15 monthly or $185 per year. Your cost will vary based on your location, the amount of your deductible, as well as how much and what kind of coverage you want. Discounts are often available if you purchase more than one kind of insurance from your insurance agent. Often people will get a break on auto insurance by purchasing homeowners or renters insurance too.
All-contents Coverage - You might think that your personal belongings are not valuable, but it would likely take thousands of dollars to replace them. Consider how much it would cost to purchase new clothing, electronics, furniture, and other necessary items if something were to happen to them. For this reason, renters insurance offers great value for its small price tag. It covers against a wide variety of possible events as well, including theft, vandalism, riots, and other natural and man-made disasters, excluding floods and earthquakes.
Liability Coverage - Often younger people don’t consider their own liability because they do not own the property. Unfortunately, if you rent a home or apartment and someone is injured while inside, you may be sued. Renters insurance provides protection against this and also pays any court judgments and legal expenses up to the policy limit. Most renters insurance policies cover at least $100,000 in liability as well as a smaller amount for medical costs. The renter can increase this coverage if they feel they need more, of course. Renters insurance does not cover losses caused intentionally or by negligence, though, so it likely will not cover fire damage if you smoke in bed.
Landlords’ Requirements - In many places landlords require their tenants to purchase renters insurance, and they will request proof of purchase. Some landlords wish to limit their own liability. Others are required by their own insurance company to have the renters’ property insured.
Travel insurance - Renters insurance also covers your personal belongings from loss or theft when you travel, whether that’s on vacation or just in your car when you are traveling. Ask your insurance agent for further details, and he will be happy to clarify what is covered.
For its small cost, renters insurance covers you against a wide variety of risks, both your belongings and you personally in terms of liability if someone is injured in your home or you cause someone to be injured. In many apartment buildings, it’s required by the landlord as well. If you are interested in acquiring renters insurance, contact us at Navisure Insurance Group. We would be happy to discuss your specific needs with you and recommend the best policy for your budget. Call us today!
COREY VANDERMEER | PRESIDENT
Corey started his insurance career in the claims department for a national carrier and learned the basics of insurance coverage and how it’s applied. From there he decided to take the jump into sales and joined an independent insurance agency. Here he learned how to build coverage around the needs of each individual and cater to every client. When Corey decided to start an insurance agency he did so with the intention of simplifying the process of getting insured. With a focus on technology and simplicity; his goal was to create an insurance agency that was different from those currently dominating the market place.
When he’s not working, Corey enjoys golfing, fly fishing and spending time with his wife and kids. Together they enjoy traveling to Northern Michigan and to his wife’s hometown of San Francisco.