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Renters' Insurance

What You Need to Know about Renters' Insurance Before You Move Into Your Apartment

As you make decisions about apartment living, we encourage you to gather information and make an educated decision regarding a renters' insurance purchase. 

Below you will find helpful information on:

  • Why people choose to purchase renters' insurance
  • How much renters' insurance costs
  • Details to consider when choosing a policy

Why Buy Renters' Insurance?

A common misconception among renters is that they are covered by their apartment community owner's insurance. Although owners and property management companies do carry insurance policies, they don’t protect your personal assets in your apartment.

Renters' Insurance Protects You from Disaster

During an emergency or disaster, when you leave your apartment, all you have is the clothes on your back. What would happen if that’s all you had left? If a fire starts in your apartment, you can be faced with the prospect of replacing all of your material possessions. How much would it cost you to replace what you have? 

Even if you’re just starting out, it would cost thousands of dollars. If you’re more established, it would cost you tens of thousands of dollars. Most people are not in the position to replace all of their assets all at once. Additionally, many renters' insurance policies provide help pay for temporary housing while your rental home is being repaired or replaced. The primary reason you should invest in renters' insurance is to protect against the risk of loosing it all.

Renters' Insurance Protects You from Theft

Renters experience higher rates of burglary and theft than home owners. Renters' insurance helps you replace stolen items.

Renters' Insurance Includes Liability Insurance

If someone falls in your apartment and gets hurt, you may be liable. Renters' insurance helps protect you from the financial consequences.

Carrying Renters' Insurance Helps You Get Homeowners' Insurance in the Future

Renters insurance helps you build history with an insurance company. If you are considering the purchase of a home, having a renters' insurance policy will make it easier and may help you earn a discount on your homeowners policy.

How Much is Renters' Insurance?

Surprisingly, a basic renters' insurance policy is less than $200 per year. Renters with tens or hundreds of thousands of dollars worth of personal possessions or who need larger liability coverage will pay more. Your own quote will depend on a number of factors including your previous insurance history and where you live. 

According to the National Association of Insurance Commissioners, the countrywide average premium for renters insurance in 2000 was $175 for an annual policy. The premiums range widely by state from $104 to $239 per year. Despite the low cost and high benefits, a 2003 poll conducted by the Independent Insurance Agents & Brokers of America found that 64% of respondents living in rental homes had no renters' insurance.

What Else Do I Need To Know?

Additionally, consider the following to make sure you select a renters' insurance policy that’s right for you. First, all insurance policies have a deductible. The lower the deductible, the higher the insurance premium. While you can lower your premium by having a higher deductible, be sure that you can afford the deductible should disaster strike. 

Second, insurance policies have exclusions that you need to be aware of. Basic policies do not generally insure you for natural disasters, such as floods and earthquakes or the loss of certain items such as jewelry or art. However, you can purchase additional coverage to insure for these potential losses.

How Do I Buy Renters' Insurance?

Buying renters' insurance is easy. You can easily get a quote and purchase insurance online or you can also purchase renters' insurance from your local insurance agent. 

Copyright 4 Walls, LLC. Reprinted with permission.

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