While most mortgage lenders require their customers to obtain homeowners insurance, renters don’t have that extra push they need to protect their assets, leaving just 37% of renters insured. This is partly because renters insurance premiums are so low that insurance companies don’t want to waste time selling these policies. That’s good news for renters who understand the value of renters insurance, where just $5 a month can provide significant financial protection.
Here are a few common scenarios in which renters insurance can help make you whole again.
Flooding & Water Damage
As residential communities rapidly expanded over the past several decades, many new apartment buildings were built on known flood plains. However, all rentals are subject to flooding and potential water damage when you consider the possibility of plumbing leaks. While the rental company’s own flood insurance covers the bare unit (walls, floors, etc.), it usually does not cover the renter’s possessions. Renters insurance can cover the cost of replacing or repairing items damaged by water, including electronics, clothing, furniture, and more. This coverage also applies to smoke damage caused by a fire.
Burglary & Theft
If your apartment is burglarized, your stolen items can be covered by renters insurance. Some policies even allow claims for items stolen outside of the apartment, whether from a hotel, restaurant, cafe, or other location.
In order to get the most from your renters insurance claim, you must document your possessions from the beginning of your policy. Create an itemized list of all electronics, jewelry, and other valuable items. A spreadsheet containing photos of the items, model numbers, purchase date, receipts, and other detailed descriptions can help ensure your renters policy covers the appropriate amount.
When a fire, flood, hurricane, tornado, or earthquake strikes, renters may be displaced indefinitely while the apartment company attempts to negotiate repairs and file claims with their own insurance. In some cases, this forces families to regroup in a hotel room or, worse yet, in a month-to-month rental. These temporary living costs can be covered by renter’s insurance.
If another person is injured on your rental property, you may be held legally responsible for their medical costs. This is true whether the accidental injury is your fault or not. For example, if your dog bites someone on your rental property, renters insurance could cover the legal and medical fees that ensue. If someone happens to burn themselves while cooking in your kitchen, their costs could also be covered.
Even with all of this excellent coverage, renters insurance is very inexpensive. Basic plans start around $5 per month, while $50,000 of coverage costs around $300 per year. There’s no sense in any renter foregoing this valuable protection.
About The Insurance Store
The Insurance Store was created to bring ease and agility to Surplus Lines coverage placement for agents serving commercial and personal lines clients in specific regions throughout the country. We provide a wide variety of packages for hard-to-place products and risks that include earthquakes, floods, hail, and more. To learn more about how we can protect you in the event of an unforeseen event, contact us today at (425) 313-9605.