Do Not Rent Trouble by Not Having Renters Insurance

If you thought that renting a property and not having renters insurance was living on the edge, you’re right.

Costing as little in many cases as around $200 a year, renters insurance can bring you peace of mind in the event there is a fire, other disaster or theft at the residence you are renting out.

In many cases, you may find that you were not the cause of the problem, but rather a neighbor or an intruder.

Let’s say you are renting an apartment and the individual next door to you falls asleep with a cigarette. The next thing you know there is a fire and both smoke and water damage has left you unable to reside in the complex and you also lost some of your possessions in the fire.

What are your options without renters insurance?

If you are expecting the landlord to pay for all your replacements, think again. The landlord’s insurance will only pay for the building structure itself, not to replace each and every tenant’s possessions.

One problem many people don’t address is to know how much their possessions are actually worth.

As it turns out, State Farm notes that the average individual owns more than $20,000 in property. Those items likely include things such as furniture, computers, electronics, clothing, jewelry and more.

For as little as $200 a year, a good policy could insure individuals for more than that $20,000 figure.

It is important for renters who do have coverage to conduct an inventory of their possessions so that you have proof of each item in the event there is a natural disaster or theft and you need to file a claim with your insurer.

The best way to go about this is to take note of the make, model, serial number, age and expense of the items (both purchase and present replacement). Individuals should be sure to photograph and/or videotape the items and keep that proof located outside the residence.

Valuable items like jewelry, antiques, furs and other such items are not placed entirely under a basic policy, so it is important to insure these through a separate policy known as a floater.

Renters should choose a deductible that works for them. Take note that a larger deductible (one’s out-of-pocket costs) translates into a lower premium. It is important to balance one’s ability to cover the deductible with their monthly premium savings.

A basic renter’s policy typically includes liability coverage in the event someone is injured at your residence.

Finally, when renting for the short or the long term, ask yourself if you’re willing to go without insurance.

For most people, hopefully the answer is no.