When we think of insurance policies, we mostly consider car, home, and health care coverage. It’s required in the state of Tennessee to have liability coverage for your vehicle, and 95% of homeowners have policies to protect them against theft and damages, so why do only 41% of renters choose to have insurance? There are a few misconceptions that are worth debunking if you rent property.
#1 It only covers personal belongings.
It’s easy when you live in an apartment to dismiss renters insurance thinking you don’t own enough to warrant the purchase, but when you start to total all of your personal belongings, you’ll be surprised how quickly things add up. Between televisions, computers, clothing, and furniture the average renter owns about $20,000 of personal property. That’s a hefty chunk of change if the time ever comes to replace everything. One of the biggest misconceptions about renters insurance is the coverage of only personal belongings. Most policies are quite extensive and additionally cover:
- Damages caused by vehicles or aircraft
- Weight of ice, snow, or sleet
- Water damage from household appliances, plumbing, and sprinkler systems.
Accidents happen, and that’s why you buy insurance. If you experience issues with your plumbing and the water damage seeps into the apartment below, most policies cover the liability of replacing your neighbor’s personal belongings. It would also include the expenses of someone tripping over a rug or loose floorboard and needed medical attention.
#2 It’s too expensive.
Car insurance can become pricey depending on your state’s premium mandates, but renters insurance is usually a fraction of the cost. On average, a comprehensive policy will typically set you back $185 a year. That’s just over $15 a month or the price of five lattes from your local Starbucks. Every policy price will vary depending on the insurer, location, and the individual, but it’s not hard to find insurance for 50 cents a day.
If that’s not cheap enough to get you thinking, there are other ways to save on your monthly premiums. Most insurance companies offer more than one coverage option and will give individuals discounts for multi-policies and reward loyalty. Bundling your car and renters insurance could save you anywhere from five to ten percent every year.
#3 My landlord has insurance, so I don’t need to take out a policy.
Landlords must have insurance, but their policies only cover the structure of the building and not the damages done to personal property. If a hail storm damages the exterior of the building, the landlord’s policy will cover the repairs. However, if you use a refrigerator that is owned by your landlord and it breaks, seeking compensation for the spoiled food would not be the responsibility of the landlord. That’s when renters insurance would come into play.
Many landlords are trying to move away from liability of their tenant’s personal belongings and even require them to have renters insurance to lease an apartment. It’s possible most landlords will partner with insurance companies to provide discounts.
For more information about affordable and comprehensive renters insurance policies, contact Royce Williams Insurance today.