The Benefits of Renters Insurance
Renters insurance has a long list of benefits it provides, it's the most affordable insurance out there and has huge upside for renters. Despite what most people think, renters insurance is not just for college students, it's for anyone who rents whether you’re single or have a family. It can cover your possessions, medical expenses, liability and additional living expenses. People rent instead of buying a home for a number of reasons like temporary work reassignment, family, personal finances or school. Whatever the reason everyone who rents need to have renters insurance.
The most simple explanation is because it protects you, the renter, and protects the people around you from potential negligence. Insurance is the first line of defense when something goes wrong. Insurance plans can cover everything from disasters, like a fire, burglary and vandalism.
Protip: A common practice for renters is to place their landlord as an “Additional Interest” on the policy. This allows them to be notified if the policy lapses or cancels so they can stay informed.
What is the cost?
Renters insurance is in the ballpark of $12-25 a month for individuals and can typically expect a $500-1000 deductible. The best place to start is to get a quote- everyone is going to have a different need so pricing will vary from person to person. The cost to benefit ratio for renters insurance is insanely good. Twelve dollars a month is about what you pay for Netflix. It also will cover you if you have a bad roommate that damages the tv or playstation you use to watch Netflix. Insurance also gives you the security in knowing your house guests and family are covered in case of an accident while they are staying over.
Protip: contact several companies to get the best rates. Do a little shopping around.
What does it cover?
In the world of insurance a “peril” is the cause of loss. Most policies are listed as a “Named Peril” which is will name specifically what you are covered against. This is incredibly important to pay attention to so you select the right policy that works for you and what you might be most susceptible to. When you are shopping for the right insurance you want to do your homework and ask the representative lots of questions. It’s not always the smartest decision to go with the cheapest insurance available.
Shop around and ask lots of questions about what the policy covers. Be sure to get a list of all the named perils because anything that is not on the list will not be covered.
Common perils include:
- Theft
- Water Damage
- Vandalism
- Fire
- Smoke
- Lightning
Recently one of the homes we manage had a water main leak out in the front yard which caused the house to have their water turned off for about two days while repairs were being made. I don’t know about you, but if I didn’t have water in my house for two days I would smell pretty awful. Having the water main break is inconvenient but things like this happen. As a renter you could be stuck in a hard place. Every property we manage we ask the renters to get insurance. There are just as many benefits to having a property manager as there are to having insurance. Luckily the tenant in this home had renters insurance and they got a hotel paid for the two nights. Good news is they didn’t have to go stinky for two days and had their hotel covered.
Where to get renters insurance.
A bunch of people don’t know where to get renters insurance. Most auto insurance companies like Geico, Farmers, and Progressive offer renters insurance and typically give you a bundled deal if you have your car already insured with them. Geico for example boasts a $12/mo renters insurance plan. There are a hundred places to get free online quotes so do a quick search on Google and go with who you are comfortable with.
It literally pays to have renters insurance for peace of mind in case of an emergency. It can save you a lot of headache, its cheap, and has a huge upside. It doesn’t matter how careful you are- you are only as safe as your most irresponsible neighbor.