If you are a renter without renters insurance, you may be taking a big risk. Consider yourself warned! Millennials, if you are thinking of renting a place or are already renting an apartment or home, this includes college students who are renting housing off campus, consider protecting your valuables with renters insurance.
Many millennials are renting without insurance because they are unaware of the risks and are uneducated on the topic. This type of insurance often gets swept under the rug as insurance companies focus heavily on advertising for auto and homeowners insurance.
The skinny about renters insurance
You may be thinking, "But my landlord has an insurance policy." Well, yes. Your landlord has an insurance policy that covers anything that needs to be fixed in the apartment building itself. But what about all of your personal belongings inside of your apartment? You are responsible for protecting the items you own and that is where your renters insurance policy comes in.
How do I know how much coverage I need?
Renters insurance can be an inexpensive addition that can give you peace of mind. According to the National Association of Insurance Commissioners (NAIC), renters insurance premiums cost an average of $15 to $30 per month. The coverage that you need depends on the number of items that you have. How do you figure out what your coverage limits should be? You will need to take an inventory of what you have and how much it would cost if the items are stolen or damaged and need to be replaced or repaired.
What renters insurance covers
Personal posessions In simple terms, renters insurance covers personal possessions that become lost, damaged, or stolen in the event of a fire, burglary, or vandalism in your rented unit. You may also be compensated if you need alternate living arrangements due to a fire or storm making your unit unlivable. Your renters insurance will most likely cover your personal items if they are stolen from areas outside of your apartment, such as from your car or while you are on vacation.
Personal liability It can also cover personal liability if someone is injured in your apartment (depending on the details of the injury), as well as cover legal disputes if the injured person files a lawsuit against you.
Jewlery and valuables Jewelry and other valuable items may be covered by your renters insurance. These items may have a value limit. You can seek additional coverage, such as a rider, if the value of these items exceeds the limits.
Like any line of insurance, renters insurance can be confusing, and you might not know where to start, especially if this is your first time buying an insurance policy. For further information, check out our practical guide for understanding renters insurance and be sure to read renters insurance reviews on Clearsurance. It can be exciting to move into your own place, but there are a lot of things to consider, including protecting your personal possessions in the best way possible.
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