The Tenants Guide to Renters Insurance

Posted on Jul 01, 2019
The Tenants Guide to Renters Insurance

Renters insurance is becoming increasingly important for tenants in today’s society.

Many renters fail to understand how costly it is to replace everyday essentials all at once if they become displaced due to a fire, hurricane, or another covered event.

But that is only a small portion of why you need to buy coverage.

Below, we will explore the many reasons insurance is essential, what protection it provides, and why you need it regardless of your financial circumstances.

Why Get Renters Insurance?

Don’t make the mistake of believing that your possessions aren’t valuable enough to require renter’s insurance.

You own more than you realize.

Many of the everyday items you use and often take for granted have value. When they need to be replaced, it can be costly. When you need to replace many of these items at once, the costs can be overwhelming.

These are just a few of the reasons to buy renters insurance.

  • Helps to cover the replacement of personal property.
  • Some landlords require it.
  • May provide for additional living expenses if you are displaced due to a covered event.
  • Pays some medical expenses if someone is injured while visiting your rental property.
  • Provides personal liability protection.
  • It is generally affordable for most renters.

Many people consider liability protection to be one of the essential benefits of having renter’s insurance. It’s something no family can afford to be without in today’s litigious society.

With liability protection, you get assistance for not only settlement costs and judgments awarded against you, but also for the costs associated with your legal fees and defense.

How Expensive is Renters Insurance?

While renters coverage is affordable for most families, there is no one-size-fits-all cost involved in purchasing protection.

There are too many factors that go into getting the right policy and protection for your needs and those of your family.

Some factors that affect renter’s insurance costs include:

  • Amount of coverage desired
  • Add-on protection or endorsements (for high-value items like computers, antiques, art, jewelry, etc.)
  • Other policies bundled together
  • Discounts available to you
  • Individual insurance company offerings (in this area, working with an independent agency provides more flexibility in coverage and costs because they can choose from a network of insurers rather than a single provider)
  • Total liability limits and coverage
  • Safety features of your rental unit (things like fire alarms, fire suppression systems, burglar alarms, deadbolts, etc. can reduce your costs)
  • Whether you have pets (pets increase liability risks and insurance costs accordingly)
  • Claims history (if you’ve filed a claim in the past, insurers often believe you are likely to do so again, and this can lead to higher insurance rates).

Actions you take can help to reduce the costs of renter’s insurance. However, most people agree that the costs of coverage are marginal compared to the benefits and peace of mind insurance provides.

What Does Renters Insurance Cover?

Renters insurance is a highly valuable tool for protecting your financial interests when bad things happen. While personal property protection is an incredibly valuable aspect of insurance coverage, it’s only a fraction of the total protection it provides.

Other essential areas include:

  • Personal liability protection
  • Medical payments
  • Property damage to others
  • Additional living expenses

It’s also important to understand what is considered a covered event.  Most policies protect against the following types of damage or events.

  • Lightning
  • Fire
  • Wind
  • Theft
  • Hail
  • Vandalism
  • Smoke damage
  • Water damage when not flood-related
  • Falling objects

Many plans specifically exclude protection against floods, earthquakes, sinkholes, and other similar events.

You may need to purchase additional protection to protect your property in the event of these types of events.  We can help you determine if you need additional coverage to a standard policy.

How Much Coverage Do I Need?

The amount of insurance you’ll need varies according to your liability risks and the value of your personal property. Even though you’re not responsible for the costs of damage to the home itself in the event of covered events, you’ll find that the costs of replacing your items can quickly add up.

In fact, most people are shocked once they calculate the total costs of their possessions. Even if you don’t replace everything lost in a covered event, just replacing the essentials can get quite expensive ― especially when done in one fell swoop.

Don’t forget to consider high-value items you may own as well. These may require additional endorsements to adequately cover the costs of replacing them since most policies have strict limits on electronics, furnishings, clothing, art, etc. that are insufficient to cover the costs of replacing single big-ticket items, much less all the items lost in a covered event.

Working with an independent agency can help you determine the amount of coverage you need. Some might say it is essential so that you can get the protection for your home, according to your unique situation, that is best for you.

Protect Your Financial Interests

Don’t let another day go by without investing in insurance to protect yourself, your property, and your financial interests.

Contact Otterstedt Insurance Agency today to learn about your insurance options. We have 100 years of experience serving the needs of New Jersey households, businesses, and families.

Work with us today to see for yourself why we have been recognized as one of the top 50 insurance agencies nationwide!

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