Whether it’s home, auto or even health coverage, people know that they need to protect not only themselves and their family, but their property as well. But something that often slips the mind of many is how important renters insurance can be for those who are renting. In fact, only approximately 41% of renters have insurance. Meaning, over half of renters do not have it, and without it, if they suffer from a loss, it can be financially catastrophic. So with that many renters not protecting themselves, awareness needs to be made about why they need to understand what their insurance options are.
It’s Too Expensive
Often, when renters don’t have insurance, it’s not because they don’t know it exists. Instead, they believe that it’s an additional expense that they can’t justify paying for monthly. In reality, renters insurance often isn’t as expensive as many may think. Since you’re only purchasing a policy to cover your belongings, rather than your belongings as well as your home, your premium will be much less than if you were to purchase total home insurance. Additionally, if you have other insurance policies; many companies may be able to provide you with options to bundle them together. Further making it more financially affordable. And lastly, when comparing how much you’ll pay monthly for your insurance coverage, it would be much less than what it would cost to replace, repair or clean any of your personal belongings if your home was to suffer from a loss.
I’ll Be Covered By My Landlord Or Roommates Insurance
It’s safe to assume that every landlord has insurance for their property. But it should be clarified that their policy rarely covers both the building and the tenant’s contents within the building. Meaning, if a loss occurs and the only coverage for the property is your landlords, there is a slim chance that your personal belongings will be covered and you would be responsible for the expenses to repair, replace or clean your damaged contents.
Similarly, many renters assume that they can piggyback on their roommate’s insurance coverage. If you’re thinking about doing this, or are currently doing this, it can’t be stressed enough that you take the time to understand the extent of the policy in full. Due to many insurance companies only providing coverage for who is explicitly on the policy, and there being a limit to how much they can pay out for a claim, you should always clarify with your broker if this is the best option for everyone involved. Often, brokers will suggest that each roommate purchase their own coverage and take note of their belongings. This is mainly due to problems with paying for the premium or determining who is allocated the coverage in the event of a loss.
I Don’t Have That Much ‘Stuff’
This phrase is common among renters, especially the younger generations who may not take into account how much they’ve acquired once they move out. If this is your mindset in regards to renters insurance, it’s important that you take into consideration every item that you own, not only the ones you’ve recently purchased. Now, imagine that your belongings were damaged by a flood that happened from a water leak or a kitchen fire that caused smoke damage throughout the building. Hypothetically if the majority of your contents were damaged, would you financially be able to clean, repair or even replace everything? While it’s hard to determine what could be affected, it’s safe to say that very few would be able to replace the items that they use daily such as their furniture or their entire wardrobe at a moments notice. Let alone replace any of their more extravagant items like their flatscreen TV, guitar, iPad or fancy counter appliances. The bills can add up, even if you’re only planning to replace the necessities.
I’ll Never Need It
Everyone hopes that they’ll never actually need to use their insurance to file a claim due to a loss occurring in their home. But, it’s always a good idea to be prepared. You’ll never want to be in the situation where you not only suffered a loss, but you’re unable to afford to replace your belongings. Even if you think that you’ll never need it, you never know when a flood, fire or even theft may occur.
Insurance Isn’t Only About Protecting Your Belongings.
Renters insurance isn’t only suggested to protect your belongings; it’s also recommended that renters purchase it to protect themselves. When someone enters your home, you become liable for their wellbeing. Meaning if they suffer from a slip and fall, you could be financially liable for their medical expenses. Where renters insurance comes in, is that it protects you from these extra expenses, saving you from being financially responsible. While it again may seem unlikely that you’ll ever have to use it, it can give you the peace of mind that you’ll be okay if someone is ever injured.
Regardless of if you want to protect your belongings or yourself, renters insurance is always a good idea. Before you begin renting, or if you’re considering renters insurance, make sure to call your Cambridge Insurance broker today to see what your coverage will include and whether you can bundle it with any other policies you already have!