Why have Renters Insurance?

What many renters don’t realize is that a mere $20 a month can get them a comprehensive renters insurance policy. Most Americans spend more than that on their morning coffee!

Seems like a small price to pay to cover everything from your personal belongings, to personal liability. Not to mention having coverage for additional living expenses should you have to move out -say, because of a fire, which is exactly what happened yesterday afternoon when a fire destroyed several Copper Beech Townhomes in West Lafayette.

Just because YOU might feel as if you live a relatively safe and risk averse lifestyle, what about your neighbors habits and lifestyle?

I recall one ripe evening from my Boilermaker days when I returned to my apartment to find a significant amount of water on the first level of the building that flowed down from the third floor (Mind you, I lived on the 2nd floor).

Apparently what had happened was the slow-witted individual who lived above me felt that it would be a brilliant idea to get drunk & high and just start ripping lines in his toilet. I guess the novelty of playing plumber wasn’t nearly as thrilling as he thought it would be because once the water started spewing he simply went back to his couch to lay down and dream of Puff, the magic dragon.

While I was a good tenant, obviously the bonehead living above me had other intentions.

Enter: Renters Insurance

Sadly only 43 percent of renters are playing it smart by having renters insurance, while the 57 percent who don’t have it are playing with fire…literally.

You need renters insurance because it’s well worth it to punk down that small monthly payment to cover yourself should the worst happen. Nobody plans on having a pipe burst, or have their apartment building burn down, but sometimes stuff just happens…

Here are Seven Solid Reasons to Carry Renters Insurance:

1. Your landlord is protected, but you aren’t.
A common mistake renters make is believing that their landlord’s insurance policy will cover their personal belongings. This is not the case. A landlord’s policy covers damage to the buildings and liability if someone gets hurt on their property. But, without renters insurance, your personal belongings are not covered unless the loss is the result of negligence on the part of your landlord.

2. It’s affordable.
Renters insurance can be fairly inexpensive, particularly when combined with your auto insurance. A higher deductible can lower the overall cost of your policy. Insurance companies may offer discounts when you take measures to help prevent losses, such as installing smoke detectors.

3. Can’t live without it? Protect It!
Renters insurance policies are designed to cover losses to your furniture, clothes, electronics and other valuables. You can even extend your policy to cover items such as jewelry and antiques. Insuring these possessions will prevent you from incurring a large financial loss in the event all or some items need to be replaced.

4. Someone crashes your party….literally.
If someone gets hurt inside your apartment, you can be held responsible. These legal fees and medical expenses can be included in your policy. You never want to see someone get hurt at your place, but if they do it’s good to know you’re protected.

5. Students may need their own coverage.
If your child is a student living away from home, your homeowner’s policy may not cover his or her belongings. Whether the student lives in the dorms or in an apartment, check your policy and discuss your options with your insurance agent.

6. Can’t Stay? Your Renters Insurance Policy will pay.
Similar to an auto insurance policy that covers rental car expenses following an accident, your renter’s insurance policy should cover living expenses if you are unable to live in your home for a period of time after a loss occurs. This can include expenses for a hotel stay and meals.

7. Getting Sued can get expensive.
If a guest or visitor is injured at your place your Renters Insurance policy will provide liability protection to help pay for your legal defense fees and any damages that are awarded. Without it, everything from your wages and personal property to your checking and savings accounts could be at risk.

If you live in Indiana and would like to discuss your insurance with me Click Here.

Image Courtesy of: jscreationzs / FreeDigitalPhotos.net

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