Four Surprising Facts About Renter’s Insurance

Most tenants who have ever rented an apartment, condo, or house have probably seen a clause in their lease from the owner suggesting that they purchase renter’s insurance. Most tenants have also ignored this suggestion unless it was actually a requirement per the terms of the lease. Here are some lesser known facts about renter’s insurance you may want to consider.

 

  • Renter’s insurance is considerably less expensive than you might think.

Think about the cost of health insurance or auto insurance. Now throw that number out of the metaphorical window. Renter’s insurance is much less expensive than almost any other type of insurance in existence. The amount you pay for renter’s insurance primarily depends on a handful of factors and these include: zip code, square footage of your apartment, claims history, how much coverage you want for personal belongings and any other additional coverages. If you want a fairly standard policy that just covers your belongings you can potentially get covered for a few hundred dollars a year. That’s probably less than the cost of most people’s health insurance for a single month.

 

  • Your Landlord is Not Responsible for Everything

The fallacy behind renter’s insurance is that tenants frequently assume the landlord is responsible for a lot more than they actually are. As such, renter’s insurance is a protective measure that many overlook until it is far too late. Remember that episode of Friends where Chandler and Joey’s apartment is robbed? Ross asks them what their insurance company said and Chandler miserably responded with “They said you don’t insurance with us so stop calling.” If your apartment is robbed, or there is a break in, don’t expect your landlord’s insurance policy to cover this. You need your own insurance as a tenant in order to be able to replace your personal belongings.

 

  • Calling All California Residents – You Aren’t Automatically Covered for Earthquake

If you live in California and DO have a renter’s insurance policy you need to be aware that you may not be covered in case of an earthquake (every other week the news reports ‘the big one’ is coming any day now). It is likely that your policy covers you for certain things and not for others – it’s entirely possible you opted out of some additional coverages in order to keep the premium down. One of these additional coverages is that of earthquake. If you have a considerable amount of personal property then you may want to cover yourself for earthquake. This coverage is not automatic and needs to be added to the policy for an additional charge. If an earthquake occurs and you figure that your renter’s insurance policy will cover your belongings be absolutely sure that it is included in the policy. Especially if you live in California, it might be worth the extra premium.

 

  • Renter’s Insurance is Easy to Purchase

Renter’s insurance, in many ways, is simpler to purchase and simpler to write on the insurance agent’s side than a lot of other policies. It only takes a few minutes to get a quote, and is a lot simpler to process than auto insurance (don’t have to take pictures of your car, send in registration, proof of marriage, etc). The only way to complicate the process is if you have to ‘schedule’ a particular belonging. For example, you have an item of particular value that you want completely covered – even in case you lose it and it is your fault. In this case the best way to cover that belonging on your renter’s insurance policy is to ‘schedule’ it by taking a photo and sending in a recent appraisal or receipt.

 

Renter’s insurance is one of those lesser known ways you can provide your life with a little bit more security for a reasonable cost. If you have questions about getting a renter’s insurance policy, or questions about your current policy, call an agent on our team. We’re happy to assist with any questions you may have about renter’s insurance or any other insurance policy.

 

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Yuliya Polovinchik is a Broker-Agent at Fairfax Insurance Services.

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