Best Renters Insurance Opportunities
Should you find yourself renting an apartment, condo or home, be sure to give serious consideration to obtaining a renters’ insurance policy.
A renters’ insurance policy will give you protection with both your possessions and cover you should a person be injured on the property you are renting.
Many renters will have questions regarding their particular situations, so it is best to get with an insurance agent to help you make sure you are covered.
As you search for multiple quotes and the best renters insurance, be sure to go over some of the following questions and answers:
Q. Since I’m a renter and not a homeowner, do I still need insurance?
A. Yes. Renters’ insurance would cover you if you’re possessions are damaged or stolen, or if someone were injured on the property you are renting. As an example, if someone was injured on your rental property, would you have enough funds to cover legal fees and possibly settle a lawsuit? Renters insurance provides the same general personal property coverage and liability protection like a homeowners policy. Many policies are surprisingly extensive and can include added living expenses (also known as loss-of-use coverage) should you be forced due to fire or other damage to live elsewhere. Renters can also get flood coverage in a separate policy.
Q. Doesn’t my landlord have me covered with his policy?
A. No, the landlord’s policy covers damage to the property and the landlord’s personal property, not your belongings or liability.
Q. How are prices set for renters’ insurance?
A. You will find that renters’ insurance is actually pretty inexpensive. Nationally, the average cost for a renters’ policy is $189 per year, or approximately $16 per month. Just as with all property/casualty policies, the value of your property to be insured and other risk factors are weighed by the insurer to determine your premium. You could receive a discount if you buy auto insurance and renters insurance from the same company. Your agent or company representative can help you find the best combination of coverage and cost, especially when you are using multiple quotes.
Q. If I reside in a residence with several roommates, do we each require a renters’ policy?
A. Discuss with your agent or company rep how this situation will impact you. In most cases, it is best if each of the roommates is on the same policy, even though it is possible for each individual to buy his or her own policy.
Q. Since I work out of my apartment, is my inventory and business property covered with renters’ insurance?
A. The inventory and business property will be covered within certain limits. Note that both inventory and business property will be covered as personal property used for business purposes. Keep in mind, however, like all personal property; there are monetary limits for reimbursement. Whether your home business is your major occupation or a hobby that brings you a few hundred dollars each year, it is still regarded as a business, and should be treated as such. If you have invested a fair amount of money for equipment and sell the occasional item, you should consider whether the personal property limits will be sufficient. Finally, note that the personal liability protection in a homeowners’ policy will not extend to business liability.