Make Sure You're Covered with Renters Insurance

Renters Insurance is something every renter should consider; though many believe they don’t need it, it can help protect you in the long run. Insurance companies often offer numerous benefits with this type of policy, including protection from enormous medical bills should someone be injured while in your apartment or home. Renters insurance can also cover your personal property should you be the victim of a fire or theft.

One of the biggest misconceptions renters have is that the landowner’s insurance policy will cover their personal belongings in the event of a disaster. This simply isn’t true. Your landowner carries a policy that will protect the structure of the property – not yours or the liability you incur when you have visitors. Oftentimes, owners of rental properties will now require their renters to carry renters insurance so he or she will be covered should damage happen to the specific property in which you live (perhaps to the windows, carpeting, or interior walls).

Renters insurance is typically quite affordable, so renters shouldn’t shy away from it because they fear they can’t afford it. What you really can’t afford is to replace all of your personal property or cover the injuries of a visitor should the unthinkable happen. The cost will, of course, vary from area to area, so you must check with your local agent to find out how much it will cost to protect yourself in your particular city and state.

To get the ball rolling, simply make a list of the property you’d like to insure (expensive furniture, clothing, and electronic equipment, for example), jot down any serial numbers and file any receipts for purchases you have (if you no longer have the receipt, make note of the cost of the item). Again, working with an agent will help ensure you are fully covered – just in case!

There are many myths that surround the purchase of homeowner’s insurance of which you should be aware. Here are just a few:

Myth #1: All home insurance will cover flood damage.

Fact: Your homeowner’s insurance may not (and probably doesn’t) cover damage to your home caused by flooding. If your home is in an area at risk for flooding, you should look into purchasing a separate flood policy.

Myth #2: The medical payment portion of a standard homeowner’s policy will cover injuries to my family and me.

Fact: The most common feature of a standard insurance policy is included to protect you should someone other than a member of your family get hurt while on your property assuming they will not be suing you. Typically each claim will cover up to $1,000 each for the injured party; however, if you or one of your family members is injured, you will not be covered.

Your insurance company will likely ask you to make a list of everything you owned and include specific details – date of purchase, cost, possibly serial numbers, etc. This is nearly impossible for the average person to document just by memory, so having a home inventory already in order is the best way to avoid this if you should ever find yourself in a position of total loss. It’s a good idea to include photos, serial numbers, receipts – anything that might help improve your chances of proving ownership. Put the inventory in a fire proof safe or at another location so it will be available should you need it.

Myth #3: If I lose my home, the insurance company will pay for anything I tell them I owned at the time of the loss.

Fact: Your insurance company will likely ask you to make a list of everything you owned and include specific details – date of purchase, cost, possibly serial numbers, etc. This is nearly impossible for the average person to document just by memory, so having a home inventory already in order is the best way to avoid this if you should ever find yourself in a position of total loss. It’s a good idea to include photos, serial numbers, receipts – anything that might help improve your chances of proving ownership. Put the inventory in a fire proof safe or at another location so it will be available should you need it.

Myth #4: If I file a claim, my homeowner’s insurance premium will go up.

Fact: While there are many companies that will look at your claims history, many factors go into determining how much your premiums are. Filing a single claim over a number of years will not generally raise your rates. To be on the safe side, however, it’s always a good idea to thoroughly think through making a claim if the damages to your home are minimal. If the total cost of the repair is not much more than the deductible you carry, you may want to just do the repairs yourself. It may cost you a bit more upfront, but it could save you from an increased premium that will cost you more over the coming years.

Myth #5: I should use the purchase price of my home to determine the homeowner’s insurance coverage I choose.

Fact: A common mistake many homeowners make is getting a quote for insurance by using the purchase price of their home The purchase price of your home, however, includes the land beneath it, which, of course, would not need replacing should your home sustain damage. Your coverage should reflect the replacement cost of your home. And don’t forget to include the items from the interior of your home that you’d need replaced as well – televisions, furniture, appliances, etc.

Make sure you take these factors into consideration should you be in need of updating your policy or are looking for a new policy; it could save you myriad hassles in the event of a disaster.