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Do You REALLY Need Renters Insurance?

Oct 25, 2016 (0) comment

Typically, we talk a lot about car insurance in this blog – how much coverage you need, what coverages are available, etc. But today we want to bring up another very important coverage anybody that doesn’t own a home should have – Renters Insurance. 

According to Insurance Information Institute’s 2016 poll, 93 percent of homeowners have homeowners insurance, but only 41 percent of renters have renters insurance ( Why such a drastic difference? One of the reasons is that one of the conditions on getting approved for a mortgage is obtaining home insurance. Often, landlords do not have a requirement for renters insurance, so it is not purchased. Also, a lot of consumers believe that if they don’t own the home.

Landlords insurance policy never covers tenant’s personal possessions. Your expensive 60” Plasma TV, a collection of rear wines, or all those fancy shoes and handbags can be covered under your renters’ insurance property coverage section.

Another very important aspect of a renters insurance is a liability. This coverage protects you against liability claims. If a visitor to your rented property is injured at that location, you can be sued for medical bills, financial loss due to inability to work, hospital stay and more. Think it can’t happen to you?

According to National Safety Council “In 2014, 20.2 million Americans, or 1 in 16 people, experienced an unintentional injury … that required aid from a medical professional” . The same study determined that the number of unintentional deaths in fatal home injuries has been steadily rising.

Examples of injuries that may occur at home are

–    slip and fall, resulting in broken bones amongst other injuries

–    accidental poisoning

–    drowning

–    backyard trampoline injuries

Just imagine – you are hosting a birthday pool birthday party for your son. His friends and their parents have a great time until the tragedy happens – someone’s baby sibling fell into the pool. You can imagine the rest. Your family will undoubtedly be sued for medical bills and other damages to the child as well as possibly negligence. Apart from emotional anguish, your bank account will suffer a big financial blow if you have to settle out of pocket.

This is a type of claim that could be covered under the Liability portion of your Renters Insurance policy.

Renters Insurance policy has another valuable coverage – the policy will pay for your living expenses if you need to live elsewhere as a result of a covered property damage to your home.  Whether a tornado, fire or another disaster temporarily dislodged you from your home, the expenses such as a hotel (or temporary apartment), meals, etc. could be covered. Do note, that this coverage has dollar limitations so it best to consult your agent about the exact numbers as it varies by carrier.

As you can see, Renters Insurance is not just another expense but a necessary coverage to protect yourself and your assets. We are happy to say that this policy is very affordable. According to data obtained by National Association of Insurance Commissioners, in 2013 the average Renters policy monthly premium was only $20. Furthermore, you often get a discount if you bundle your auto and renters policies together with the same insurance carrier.

If you currently do not carry this valuable policy, we urge you to give us a call to review your options.

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