We're happy to share an article from the September 2019 edition of the The Florida…
Renting a home or apartment doesn’t change the fact that you keep valuables with you. However, many renters miss out on insuring those important items. A survey conducted by the Insurance Agents & Brokers of America found that nearly two-thirds of all renters are living without a renters insurance policy.
It’s easy to overlook insurance when you don’t own the property, but aside from the structure of a building, the landlord isn’t responsible or insured for any losses beside their own. For a small cost every year, you can make sure the value of your possessions is secure no matter what happens at a rental property.
What Does Renters Insurance Cover?
A renters insurance policy has one distinct difference from homeowner’s insurance. It does not cover the structure of the building. This falls under the responsibilities of the landlord. What renters insurance does cover is threefold.
The first item of coverage under a renters insurance policy is anything within the home or apartment unit that is considered the tenant’s personal possession. Basically anything you bring into the home is protected. This includes damage from fire or water and theft. The easiest way to determine the amount of coverage for your valuables is to make a home inventory and estimate the overall cost of replacing those items. An average policy covers about 30,000 in goods, this may be reflected in the renter quote for your insurance.
Renters insurance also covers liability. Like a homeowner’s policy, this coverage provides for the event of an injury or accidental death at your home due to negligence or other causes. This is especially relevant for pet owners as dog bites account for a large amount of personal liability claims. Most policies cover an average of 100,000 in liability costs.
It may be a good idea to browse around other policies as well, i.e. PL insurance quotes from constructaquote.com. They have a vast number of policies, which could be tailored to your needs.
One more coverage a renters policy offers is for additional living expenses (ALE) in the event of a loss. If a fire does break out or a pipe bursts and you’re forced to leave for a time, your insurance will reimburse you for those costs. Typical expenses besides temporary housing include food and restaurant costs as well as pet boarding in the event that you are ousted from your residence. You will need to check with your insurer to determine the limits of reimbursement for an ALE.
This is where things differ from the policies you can see for homeowners renting properties out, like the ones from BST Insurance Brokers and others in the industry. Because renters insurance doesn’t cover the actual structure of the building, the cost is significantly less than a traditional homeowner’s insurance policy. This is helpful to offset costs because the average renter pays nearly 50% of their income toward housing.
According to the Insurance Information Institute, the average cost of a renters insurance policy is $188 a year. Depending on the state you call home, you’ll see prices dip a little lower or rise by around $10. States with a higher premium for home insurance carry a similar cost in renters policies. States on the coast or those with larger populations generally range higher than rural states with a smaller population density or risk factor.
If you own items that stand out as extremely valuable, you may need to add a floater for specialized coverage. Works of art or expensive jewelry for example would need special considerations as their value would exceed the average coverage.
An insurance agent can help you determine the value of the items you own. You can also ask about bundling coverage if you take out a renters policy with your current insurer. Staying with the same insurer could even lead to a discount.
A renters insurance policy protects your possessions and keeps you from incurring huge losses in the event of a liability. Even with an emergency fund to cover losses, for a small amount each year you can insure your assets are protected wherever you rent.
Contact us at Fudge Insurance so we can help you find the best coverage as a renter.