You may have moved from your parents’ house into an apartment or perhaps recently graduated from school getting your own place for the first time or you may have decided to rent a house rather than own. You have lots of items on your “to do” list and getting renters’ insurance may not be a high priority. A lot of people don’t feel they need this type of insurance because they don’t own “much” or feel they have nothing to lose. There are several good reasons why you really do need this type of coverage.
There are two main coverages provided by a Renters’ policy (aka: tenants insurance.) The first is coverage for loss due to fire, theft, etc. for your personal belongings. Most people don’t realize how much they own. If you had to replace everything that you own, every piece of technology, article of clothing, furniture, sports equipment, etc.; it could create a financial hardship that would take time to recover from.
The other coverage that is even more critical is your personal liability. Here are some major considerations that you may not currently understand about this coverage:
· What happens when you play sports and accidentally hit another person with a baseball or golf ball, etc. Who do you think will pay for the medical expenses and loss of earnings for example for that person? What if you take an airline flight and accidentally hit someone with your carry-on luggage while taking it out of the overhead bin? Your first thought may be- “Let them sue me – I don’t own anything!” There are a couple of problems with that thought process. First, it is just morally wrong and second, you not only have your current assets at risk. Your future wages could be at risk as well. If you were to be sued, could you afford to defend yourself and pay the judgment that could follow?
· Another issue that you may not have considered is causing damage to your landlords’ property. We all do things unintentionally. You could leave a stove burner on, leave candles burning that you forget about or leave the water running in the tub while you answer the telephone. Damage caused to your unit or units above and below you caused by your negligence could be your responsibility.
· Most people may not have had experience with having a loss or just don’t think it will happen to them. Unfortunately, it happens all the time! I recall a renters’ policy loss where the tenants left candles burning and caused hundreds of thousands of dollars to the house they were renting.
Most insurance carriers provide discounts for having multiple policies with the same company. You may qualify for a discount on your auto insurance too. The cost of renters’ insurance is probably a lot less than you think! Contact a good independent insurance agent to find you the best coverage appropriate for your situation giving you the best value for your premium dollars.