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Counting the Cost of Security

How to Decide if Renters Insurance Is Right for You.

One of the primary characteristics of renting property is sharing building space with other tenants. Now, that can be a great thing if your neighbors are friendly, responsible adults like you are. But what if that’s not the case? As a renter, you’re often subject to every bad decision your neighbors make. They throw a house party at 3:00 a.m. on a weekday—you get to share in the fun. They leave their oven on for the weekend—you hope they didn’t leave the gas on, too.

Renters Insurance is a relatively inexpensive way to protect your personal property from the dangers of renting. But how do you know if Renters Insurance is right for you? Fortunately, there’s a simple test you can do to see if you’re a good candidate for Renters Insurance. The test is this: if you’re asking whether or not you need Renters Insurance, then you probably need Renters Insurance.

Why pay for Renters Insurance?

Most renters have a mistakenly low view of Renters Insurance. In fact, only about 30% of renters claim to have purchased a Renters Insurance policy. Like most other types of insurance, you could pay into Renters Insurance year after year and never need it. But ask yourself this simple question: if all your personal property was destroyed right now, could you afford to buy it back on your own?

With Renters Insurance, you can protect your personal property from damage or theft for less than $200 a year! That’s a pretty marginal fee compared to most regular rental costs. And when you start to calculate the cost to replace everything currently in your possession, that number gets a whole lot smaller. Got a neighbor who likes starting campfires in his living room? With Renters Insurance, you’ve got nothing to fear—well, except the actual fire.

But let’s flip the situation around now. What if it’s not your neighbor who causes the damage, but you? Maybe your bathtub overflowed and damaged the apartment below. Now you’re facing a liability lawsuit. If you lose, you could find yourself responsible for some pretty hefty charges. Fortunately, your Renters Insurance can cover those damages, too, up to the liability limit in your policy.

Won’t I be covered by my landlord’s policy?

While many renters may think they’re covered by their landlord’s insurance policy, that’s rarely the case. Most landlords take out what’s known as rental insurance, as opposed to regular homeowners insurance. In the event of damage, this insurance will cover the rental structure itself but not the tenants’ property. So if a tree falls through the roof destroying your rental home, the house is covered. But the big screen TV and your favorite parka? Those are on you.
So you’re saying I should get Renters Insurance?

That’s exactly what I’m saying. For anyone renting a home or apartment, Renters Insurance is a no brainer. Renters Insurance policies can vary, so contact your Pekin Insurance agent to find out which policy is right for you. Get the protection you need now. Don’t wait until it’s too late.

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Sources:

http://money.usnews.com/money/personal-finance/articles/2013/09/12/4-common-myths-about-renters-insurance

http://www.washingtonpost.com/realestate/do-you-need-renters-insurance/2012/09/19/b44839b6-0273-11e2-9b24-ff730c7f6312_story.html
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