How Much Renters Insurance Do You Need – If you do not plan on getting renters insurance because you don’t want to squeeze another bill into your budget this could be a very expensive mistake.
Have you thought about what you would do if you lost everything in a fire or tornado? Can you afford to just go buy all new electronics, if your home is the next victim in a string of burglaries in the area?
Most people assume they are saving themselves a lot of money by not getting renter’s insurance, not even realizing how inexpensive it actually is.
If you are expecting it to be outrageous you will be pleasantly surprised that in most cases it is well under $1 per day, and that is for really good coverage!
Do You Need Insurance
Every renter needs insurance; plain and simple. Just because your landlord has insurance does not mean you are covered.
According to the National Association of Insurance Commissioners, the insurance your landlord has is primarily to cover structural damage.
In some cases, it will cover tenant-related damage, too. This does not cover your belongings. Plus, if you start a small fire in the kitchen or if you go on vacation in winter, turn off the heat and come home to a frozen pipe that has burst, you could be responsible for the damage.
You may also think that you do not need insurance if you do not have expensive jewelry, art, or other high-priced items. If you lost everything, you may be pretty surprised at how expensive it would be to replace everything you have.
Determine Your Coverage
Before you even speak with your insurance agent, it is a good idea to have an estimated value of your belongings. Create a list of electronics, jewelry, art, furniture, appliances, collections, sporting and camping equipment, and other high-dollar items. Then, add estimated values for apparel, shoes, kitchen items, décor pieces, etc.
You will want to find out what hazards your plan includes. For example, if you live somewhere prone to hurricanes and flooding, water damage should be a hazard factored into your policy.
Do you have a roommate or do you plan on getting one? If yes, will you want their items covered under your policy? A few questions to ask your agent when creating a policy include:
- Is a discount given for a burglar alarm, deadbolt, sprinkler system, or fire extinguisher on the premises?
- What natural disasters are included in the coverage?
- Is my pet covered in my policy? You may have the sweetest dog in the world, but if a little kid puts their fingers through the fence, they could look like treats. Do not think you won’t be responsible for medical bills, even though their fingers should not have been there in the first place. If you have a Pitbull, be prepared for most insurance companies to turn you down. Don’t worry; State Farm does not discriminate against breeds, nor do they overcharge for them.
- If there is damage, will funds be provided for temporary housing while repairs are being done?
- Are your belongings covered during the move? In many cases, your policy will cover your belongings during a move, or if something is stolen from your car when you are parked at school or work.
Renters insurance is one of the most important bills you will pay every month, and it will not put a dent in your budget.
Depending on the coverage you need and where you live it could be as cheap as $15 per month. That’s about the same price as a martini in some cities!