by Cindy Garcia, Licensed Insurance Agent with ROX Casa Grande Insurance
A recent study has revealed most people who rent apartments or homes will not have a Renters Insurance Policy unless the landlord requires one. This raises the question, “Do I really need Renters Insurance?”
To find the answer to this question, we need to define Renters Insurance. The only way you can make an informed decision on insurance coverage is to FULLY understand what it covers.
Renters Insurance is strictly for people who rent. Commonly, this includes renting a single-family home, apartment or condo. This insurance coverage is specifically designed to cover your belongings and liability. The policy will protect you in important ways.
But what does it cover? Renters Insurance covers some things like your personal property. A good analogy is to imagine turning your dwelling upside down and shaking it – almost everything that falls out is your personal property. Think of your possessions such as pots and pans, linens, clothing, and furniture, among many others. Renters Insurance also offers you liability coverage. This means that if someone is injured in your home and you are sued, your policy will cover court judgments made against you and any legal expenses up to the limit of your coverage. As well, it covers additional living expenses, which means that you are covered in the event you need to stay somewhere else due to a covered cause of loss. This also includes expenses, such as increased cost for food.
Most causes of loss are:
- Fire or Lightning
- Windstorm or Hail
- Theft or Burglary
- Falling objects
- Weight of ice, snow or sleet
Most renters and home insurance policies do not cover flood. Flood is caused by water rising from the ground up, like from a broken levy or dam. If there is a windstorm that comes through the area and tears the roof off and it rains on your belongings, this is not a flood. The wind actually caused the damage originally and then it rained on your household goods. Flood insurance is a separate policy that can be purchased.
You will be amazed at how fast your belongings will add up if you had to replace them. The average renter has about $20,000 in personal belongings, if not more. The average cost for a policy is anywhere from $200 to $300 a year. That could average out to two pizzas a month, which is not much to pay or give up the piece of mind that comes with protecting you and your family.
So, do you need a Renters Insurance Policy? Talk with a Licensed Insurance Agent to discuss your needs today, as well as everything a Renters Policy will cover. The truth is, you don’t know what is going to happen. We work too hard to obtain our assets, so protecting them is important.