Hey Renters! Do you think renters insurance is too expensive? Don’t believe you need it? Think AGAIN! It’s natural to think renters insurance is expensive, after all, Car insurance, health insurance, home insurance, are all pricey right? Why wouldn’t a policy covering your belongings as well as liability in your temporary home be any different? In reality, a renters policy on average costs about 50 cents per day. On a monthly scale, an average tenant policy usually runs less than the price a movie outing, a delivered pizza and even a tank of gas per month (unless you have a smart car). With that being said, today we’ll bust a few myths that are commonly speculated regarding a renters policy
Myth 1: "My Landlord Will Handle It"
Tenants often believe they do not require a renters policy as the landlord will protect their property, belongings, and items if an accident were to occur. Answer: Most landlords will carry insurance on the property, however, it does not always cover a tenants belongings inside. In most cases a landlord will carry a liability policy that protects the building only. In some situations, landlords will carry additional insurance for appliances in the home, however the landlord is not responsible for protecting nor insuring a tenants personal items inside the home.
Myth 2- "I Don't own enough valuables to have insurance"
Do not assume this notion, confirm it! It is estimated that the average property in a 2 bedroom apartment equates to $30,000. It is always a wise idea to take inventory of your belongings in the home. Walk room by room and determine the amount in each space making sure to include not only large ticket items (such as jewelry, television’s and other electronics) but also smaller items such as dishware, linens and even food. Additionally, consider items that you may personally find value in such as collector items, family memorabilia, or famous art décor. It is very common for tenants to underestimate the replacement value of the items located in their home, which make’s the need for a tenant policy essential.
Myth 3- "It's not worth the headache to insure my stuff"
Tenant policies provide more than just coverage for your belongings, they also provide liability for accidents that could occur in your home. For instance, if your sink or bathtub overflows causing water to leak to the home below you which ultimately damages your neighbors furniture, carpets or rugs, a tenant policy may protect you up to your insurance policy limits. Consider additional exposures such as cooking fires, injury of guests (such as an infant) in your home which could occur. Protection from these risks could apply in a tenants policy providing you with much more coverage than just “for your stuff”
Myth: "Tenant Insurance is Costly & I can't afford it"
It actually may make financial sense and only cost cents (per day). Upon reading the above statements, we have disclosed the risks, determined the cost for this type of policy the values, and protection that a tenant policy can provide for you as a renter. On average, a tenant policy costs around $200 or less a year. After deliberation, If you have determined the cost of your valuables in the home overweighs the cost of a tenant policy than it is most likely wise to purchase a renters policy that could protect your out of pocket expense from covering these belongings in the event of a loss. Additionally, multiple policy discounts may be applied if your renters policy is purchased through the same company as the auto insurance.
In sum, renter policies are an affordable yet valuable tool to ensure that you and your belongings are protected while living in your home. It is imperative to develop an inventory of your possessions, determine the amount of contents that you require your property to be insured for and contact your local insurance agent or company for quotes. As always, Snotherly Insurance is available to provide quotes, answer questions and address any concerns you may have regarding a tenant policy. Contact us here for more information today.
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