More and more people in the U.S. are renting these days, but in 2014, data showed that only 30 percent of renters had renters insurance.
When it comes to renters insurance, there are a lot of common misconceptions. Here are some of the top frequently asked questions, so you can make an informed decision about whether renters insurance is right for you.
Do I Need Renters Insurance?
The short answer is yes, but, obviously, you are probably also wondering why. The simplest reason is that renters insurance provides you with protection that could potentially save you a lot of money.
Renters insurance protects you from having to pay for accidental damage to the property you’re renting, as well as if you are responsible for an injury to another person that occurred on the property. If you don’t purchase renters insurance, you could end up losing your apartment or being liable for thousands of dollars in damages.
Will My Landlord’s Insurance Protect Me?
Generally speaking, the answer to this question is no. Landlords have insurance that protects against structural damage to the building itself, but it usually will not extend to covering your personal possessions, as well as any damage that you cause. Put simply, landlords insurance is intended to protect the landlord, not tenants.
Even if your landlord’s insurance does protect against limited damage, if you are responsible for serious damage caused by a fire or plumbing accident, renters insurance will protect you from having to pay for those potentially expensive incidents.
Who Does My Renters Insurance Cover?
If you live with a roommate or family, it makes sense that you want to know who is covered with your renters insurance. Under some policies, your spouse and up to three additional adults over age 18 (such as roommates) are covered under one renters insurance policy. Keep in mind, though, that nominal additional premium amounts may apply, so it’s important to consult with a knowledgeable insurance agent.
How Much Does Renters Insurance Cost?
The specific price of renters insurance premiums varies depending on a variety of criteria, but it is much more affordable than most people think.
The National Association of Insurance Commissioners estimates that the average renters policy only costs between $15 and $30 a month, depending on the location, size, and contents of the place you are renting. This price is especially small when compared to the amount you would pay to replace everything you own if it were damaged or stolen.
How Can I Reduce My Premium?
Everybody wants to save money, people purchasing renters insurance included. Fortunately, there are ways that your premium can be reduced depending on your residence’s safety features. For example, many insurers will reduce your premium if your apartment has fire alarms, burglar alarms, fire extinguishers, sprinkler systems, and/or deadbolts on exterior doors.
You might also be able to get a lower premium from an insurance company if you have multiple policies with them.
There is a lot to keep in mind when it comes to purchasing renters insurance. Luckily, the insurance professionals at Best Insurance Services are here to assist you. Contact us today to learn more and get the protection you need.