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Free Advice Friday! Renters Insurance

Today on Free Advice Friday we’re talking renters insurance.

Renters insurance seems to be one of those things that you typically don’t even think about it until you’re forced to get it when you move into a new place and your landlord tells you that you need to get it.

In what may seem like a nuisance at the time, another bill for you to keep up with, the landlord or apartment rental company is actually doing you a huge favor. This is so because in the event that a claim happens the items that currently sit in your apartment will be lost forever and you will be left with nothing.

When it comes to the question of do I really need renters insurance just ask yourself this simple question. If the place goes up in flames tomorrow what is my plan? Are you fine to not only find a new place to live, but also furnish it? Also don’t forget you will have to typically purchase a new wardrobe, some new appliances, and not to mention the cost of maybe that prized family possession that you have had all of your life.

Now ask yourself this. If I can pay as little as 50 cents a day and when that time comes, Im covered wouldn’t a get a great return for my money?

Even if we are not talking about your personal property, just say you’re fine with the losses if they come, here are some other things that Renters Insurance can do for you.

  • Personal property damage: If your personal belongings are damaged are destroyed by an event covered by your renters insurance, your insurer will cover the cost of the damage up to your policy’s limits.

  • Personal liability: Protects you against the legal liability of an accident in your residence, such as your responsibility for medical bills and lost wages if someone is seriously injured as a guest at your place.

  • Loss of use: If your residence becomes uninhabitable due to a covered event, your renters insurance policy will cover expenses exceeding your normal living expenses.

  • Medical protection: Pays for reasonable medical expenses for someone injured in your residence.

Arguably, the lower someone’s income, the more they might need renters insurance — especially the liability and loss of use coverages. Liability damages, especially, could be a crippling financial burden for someone who does not have enough savings to cover the costs. But incidents or events that lead to those types of losses can happen to anyone. No matter how much someone earns, they could be found liable for whatever the cost of damages might be, and in some cases, those costs can be quite high.

If that’s not enough consider these:

Renters with a pet: Consider a tenant without renters insurance whose dog bites someone. Typically a policies liability coverage would cover any damages (including medical bills) associated with a dog bite. But without it, they would have to pay for those out of pocket. The average cost per dog bite claim in the U.S. is approximately $35,000 an amount that could be financially crippling for many renters and a huge cost for most.

Wealthy tenants: Even wealthy tenants with significant savings can take advantage of the benefits of renters insurance. Wealthy renters might be able to afford to pay liability claims and minor property damage out of pocket, but in extreme events, tenants could be uninsured for extensive damage costs to their personal belongings. These costs could be covered with a comparatively cheap renters insurance policy.

Renters forced out of their homes: A renters insurance policy can also help tenants who are unprepared for a calamity that renders their home uninhabitable. In the event your apartment or home is deemed uninhabitable due to a covered event — smoke damage, for example — you would be stuck paying out of pocket for any living expenses exceeding their typical spending levels if they didn’t have renters insurance. With renters insurance you will have loss of use coverage, which covers the costs of living exceeding your normal expenses — such as hotel stay, food and special transportation — you need to continue to live until you return home or find a new permanent residence.

College students living off-campus: Many college students should also consider buying renters insurance. Anyone living in a college or university dormitory is likely covered under their parents homeowners or renters insurance policy. But every college student that lives off-campus needs their own policy.


Have more questions? Need a quick quote? contact us here and we will be glad to help you get the coverage you need!


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