Buying renters insurance to protect your stuff may seem like an unnecessary expense, until you experience a theft or fire in your rented home or apartment and lose some of your most treasured possessions forever.
Whether you’re a longtime renter or just starting out in your first place, renters insurance provides important benefits and coverage. If a fire or similar incident destroyed your home and you didn’t have renters insurance, it would be up to you to replace everything you own. Plus, if someone claimed you caused an injury or property damage, without adequate insurance protection, you could be at risk for an expensive lawsuit and paying that person for his or her damages.
Here are some things you need to know:
Renters Insurance Provides Off-Premises Coverage
Renters insurance does more than cover the cost of lost or damaged possessions in your home. There’s coverage if your bicycle is stolen from a bike rack at the park, or if your laptop is taken from your car while you’re at the supermarket.
You Can Be Compensated if You’re Forced to Relocate
Most renters policies provide additional living expenses coverage if your home becomes uninhabitable due to an event such as vandalism, theft, fire or water damage. This benefit usually includes the cost of living expenses, up to your policy limits.
A Home Inventory Can Determine How Much Coverage You Need
Before you decide how much coverage you need, it’s important to know how much it would cost to replace your belongings. It’s helpful to take a home inventory to determine the value of everything you own.
You Can Reduce Your Renters Insurance Costs
There are a variety of ways to reduce the cost of renters insurance. An option is to select a higher policy deductible, the amount you must pay before your insurance coverage takes effect. Increasing a deductible from $250 to $500 could create an annual savings of up to 15 percent.
You also may want to consider buying all your insurance policies from one carrier. For example, when you bundle your auto and renters policies from one insurance company, you receive additional savings. Your friends at Apollo Insurance Services can help you choose the best coverage for your individual needs. Give us a call at 800.426.1088 , option 2 for a complimentary insurance review.