Today, apartment owners believe many myths about renters insurance. However, the truth is that for how much it costs to order a pizza each month, you can have a great renters insurance policy. Apartment renters, condo renters, family renters, etc. all use this type of insurance. It can also save you money on possible legal or medical expenses associated with any type of accident in your apartment. Unfortunately, there are common misconceptions that many renters believe are associated with renters insurance. The following are some common myths.
Choosing to rent an apartment
1) They don’t have enough items to need insurance
No rental property will be damaged, whether by flood, fire or theft. It is important to weigh the costs, both monetary and emotional. One of the most common reasons renters avoid purchasing insurance is because they don’t believe their belongings are worth covering. Many renters underestimate the value of their personal belongings and believe it will cost too much to replace the items they own.
If renters think they don’t have enough stuff, they should go through their apartment room by room and take a full inventory of their belongings before making a decision. Most people only consider the bigger items, but there is much more to it than that. In addition to evaluating the cost of your items, it is important to assess their sentimental value. An example of this might be a college student who has not yet accumulated many items. That person may be less interested in purchasing a policy. On the other hand, if you are a middle-aged couple renting an apartment, then you may want to consider purchasing many things that have both monetary and sentimental value.
2) My landlord will be fully responsible for the loss of the property.
In some cases, landlords will provide renter’s insurance to tenants, but in most cases, the landlord’s insurance policy for the property is designed to protect just that – the building itself. This does not cover any of the contents or the tenant’s belongings. For most landlords, your belongings and personal effects are your responsibility.
Even if the landlord does own some of the appliances in the rental property, they are not responsible for any damage that may be done to the property.
3) Renters insurance only covers my personal belongings
This is not true because it can also help you pay for unexpected expenses. Suppose a flood occurs in your apartment and damages the roof of the tenant below you; renters insurance will cover you up to the maximum limit. Liability protection can cover any legal or medical expenses associated with the rental property. Suppose you have several guests over and one of them trips on the carpet and injures himself; can you pay for medical expenses? Or if you end up facing a lawsuit, will you have to pay legal fees? If you buy renters insurance, it will be covered and you won’t have to worry about it.
4) Renters insurance is too expensive
Unlike homeowner’s insurance or auto insurance, buying a renter’s insurance plan is not expensive. It may add up to about $185 per year. So basically, for less than $20 a month, all of your personal property and belongings are fully protected. Premiums for the policy may vary by insurer, location and provider, but overall, renters can expect to pay about 50 cents per day for the policy and have peace of mind knowing that their personal belongings are in good hands.
In addition, many insurance companies offer multi-policy discounts to clients who then add tenant coverage to a pre-existing insurance package. Statistically, bundling your insurance can reduce your overall monthly insurance costs by about 5% to 10%.
While renters insurance is cheaper than homeowners insurance, it can still become expensive if clients are not careful. The most important thing to remember when you start shopping for an insurance policy is to shop around. You can pay twice as much with one company as you can with another. A good tip to help with this is to call your state’s insurance department and ask them to recommend the top five renters insurance providers in your state. Then give these people a call and receive some quotes before making your final decision.
The bottom line is that if you are a homeowner or renter, a qualified insurance plan is important. It will ensure the safety of your personal belongings if you suffer a qualified loss to your property and will save you time and money in the long run. Not only is it very inexpensive to purchase, but it also gives you the peace of mind of knowing that if something does happen, you will be covered.
