Myths About Renters Insurance

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What is Renters Insurance?

Renter’s Insurance is a policy that covers property owned by the renter in the event of loss, theft, fire, and other damages. There are usually multiple levels of coverage you can chose from that provides the best protection. If for some reason the place you’re are renting becomes uninhabitable for a period, your policy may help pay for you to stay elsewhere temporarily.

Items that are covered will be listed in the policy’s text and may be up to the renter to provide phots or proof of ownership to the insurance provider. There may also be liability coverage included to a policy to protect renters in case someone gets injured or someone else’s property is damages while in your property.

Myths:

  • It’s Expensive

If you think of the difference in premium in owning vs. renting. Renters have a big advantage in terms of the amount you pay for insurance. The average premium for homeowner’s insurance is $1000 per year. The average price for a renter’s insurance policy is between $150-$200. That’s only about $15-$30 a month.

  • One tenants policy covers everybody’s stuff

While you items may be covered if you have a roommate with a renters insurance policy. It is usually not guaranteed and not likely. Insurance usually only covers the persons who name appears on the policy. Signing a joint policy is easy to do from your provider and sometimes can mean paying less per person per year.

  • Your possessions aren’t valuable enough to insure

Even if you don’t own a brand new tv, computer, or home gym, you will still have items that warrant insurance. If you add up all your items like kitchenware, clothes, etc. It adds up quickly and would be costly to replace by yourself without the help of renter’s insurance. Always consider the total value of ALL your items and how much it would be to replace, not just your most expensive.

  • Without risk of severe weather, a policy isn’t worth it.

Even if you don’t like in an area where earthquakes and tornados aren’t likely many insurance policies can provide coverage for more likely events such as vandalism, fire, water damage, and burglaries. There are separate policies that cover related events.

  • Landlord’s Insurance Covers Personal Property

The landlord will have his own insurance, but this will cover the building itself not the items in it. This means items that are stolen or damaged inside the property will not fall to the landlord or his coverage to replace. Most landlords will require their tenant to have renter’s insurance policy in place while renting.

  • If you live near water you can’t get insurance

It is true that some carriers won’t provide insurance to a tenant who lives in a costal type area. This is due to wind damage and the possibility of flooding. Best course of action is to research which companies will provide coverage in those area and contact them to see what your options are.

Before buying renters insurance you should talk with your provider to ask any questions you may have and get clarification on what costs and coverages are available. Providers like the ones here at Arnold Insurance Agency have years of experience providing coverage for almost any situation and we guarantee we will do everything to get you the best policy for the best price and help you chose a plan that will give you piece of mind.