Millennials Continue To Opt For Renting, But Are They Protecting Their Assets
There are many myths surrounding renters insurance that apartment owners believe these days. But, the truth is, for what it would cost you to order one pizza each month, you could have a great renters insurance policy. This type of insurance is used by apartment renters, condo renters, home renters, etc. It can save you from possible legal or medical expenses associated with any type of accident in your apartment as well. Unfortunately, many renters believe the common misconceptions associated with renters insurance. Here are some common myths:
1) They don’t have enough items to need insurance coverage
No rental property is safe from damages, whether it is a flood, fire, or theft. It is important to weight the costs, both monetary and sentimental costs. One of the most common reasons why renters avoid purchasing insurance is because they don’t think their items are worth the coverage. Many renters underestimate the value of their personal belongings and believe that it would cost too much to replace the items that they have.
If a renter doesn’t believe they have enough stuff, they should go through their apartment room by room and take a full inventory of their items before making a decision. Most people only think about the bigger items, but there is so much more than that. Along with evaluating just how much your items cost, it is also important to evaluate their sentimental value. An example of this could be a college student who hasn’t accumulated many items yet. That person may not be too interested in purchasing a policy. On the other hand, if you are a middle aged couple renting a condo, then you may have many things that hold both monetary and sentimental value that you would want to consider purchasing a policy for.
2) My landlord will completely cover the property damages.
There are some instances where a landlord will provide an offer to the tenants for renters insurance, but in most cases, the insurance policy that a landlord has for the property is only to protect just that – the building itself. This will not cover any of the contents or the tenant’s belongings. To most landlords, your contents and personal belongings are your responsibility.
Even if the landlord does own some of the appliances that are within the rented home, they are not responsible for the damages that they could possibly inflict on the property.
3) Renters insurance only covers my personal items
That is not true, as it also can help you cover unexpected costs. Say that there is a flood in your apartment that damages the roof of the tenant below you; renters insurance will have this covered for you up to the liability limits. Liability protection can either cover any legal or medical expenses that are associated with the rental property. Say that you have a couple of guests over and one of them trips over a rug and hurts themselves, could you front the medical bill? Or the legal bill if you end up facing a lawsuit? If you purchase renters insurance it will be covered and you won’t have to worry about it.
4) Renters insurance is too expensive
Unlike homeowners insurance or car insurance, it isn’t very expensive to purchase a renters insurance plan. It will probably add up to about an additional $185 a year. So essentially, for less than $20 a month, all of your personal property and items are completely protected. The premiums for the policy can vary with insurance carriers, location, and the provider, but as a whole the renters can expect to pay about 50 cents a day for an insurance policy and peace of mind knowing that their personal items are taken care of.
Also, a lot of insurance companies offer multi-policy discounts to customers who then add renters insurance on to a pre-existing insurance package. According to statistics, bundling your insurance can decrease your overall monthly insurance costs by about 5 to 10 percent.
Even though renters insurance is less expensive than homeowners insurance, it still has the ability to become expensive if the customers aren’t careful. The most important thing to remember when you begin looking to buy an insurance policy is to shop around. You could pay twice as much with one company then you would with another. A good tip to help combat this is calling your state’s insurance department and asking them to recommend the top five renters insurance providers in your state. Then give those people a call and receive some quotes before making your final decision.
The bottom line is that if you’re a homeowner or a tenant, a qualified insurance plan is important. It will keep your personal items secure if your property was to undergo a qualified loss, and will save you time and money in the long run. Not only is it quite inexpensive to purchase, but it will also leave you with peace of mind knowing that if something does happen, you will be covered.