According to J.D. Power, 46 percent of renters do not have insurance. Other surveys have indicated that renters under the age of 25 are even less likely to have renters insurance.
Why do so many renters not have renters insurance? When asked that question, many respondents said that they felt that their apartment community had good security or that they thought renters insurance would be too expensive. However, having a good policy could mean the difference between peace of mind and disaster.
What many renters don’t know is that their leasing agent’s insurance does not cover their personal property or legal liabilities. Events such as tornadoes, floods, and fire, as well as break-ins and lawsuits can happen at any time and your personal belongings may not be covered by the apartment community’s policy.
The leasing agents insurance policy is in place to cover the their property such as the apartment as well as protecting the apartment community from liability in the case of an accident on the property or in the case of a personal injury lawsuit.
What should a good renters policy cover? First, make sure the policy covers the renter for liability such as if a guest gets injured in the house or apartment. This is very important as the apartment community’s policy may only cover their liability. Next, ensure that personal items are covered. Most common personal items can be covered at replacement value. However, if items of extra value are to be covered, such as jewelry, art work, or non-replaceable items, make sure the insurance company is aware of these items as there may be a special rider on the policy.
Keep in mind that insurance is not to make you wealthy in the case of a disaster. Insurance is there to replace the items that were lost during a disaster. Therefore, to avoid being insurance poor, work with your insurance agent to cover only what you need at a cost that you can afford. Most insurance companies will offer multiple payment plans such as monthly, quarterly, semi-annually, or annually. If you can afford annual payments, there may be discounts available.
Proper renters insurance will not only provide good protection against disaster but will also provide peace of mind.
If you need help finding an insurance agency that offers renter’s insurance, talk to the leasing agents for your apartment. Chances are, they will be able to refer you to an agency that other renter’s have used in the past.