Many apartment dwellers think that renter’s insurance is too expensive and out of reach for budget conscious consumers. The truth is, renter’s insurance could cost as little as $200 annually. Is that too much money for peace of mind?
Picture this: You’re coming home from work and notice your front door ajar. When you get to the open door you find that someone has broken into your apartment. Noticing that your television set, computer and several other items are missing you begin to panic. If you are not covered by renter’s insurance, you will be without these items indefinitely, unless the police can find and return them to you. Following your report to local police, an up to date renter’s policy would help replace the stolen items.
Now picture this: Returning from an evening out, you see firefighters tackling a fire in your apartment building. Dense black smoke is pouring out of your apartment windows. As you stand there helpless, firefighters douse your apartment with water in an effort to tame the fire. It could be several hours or possibly days before you are able to get inside your apartment. Finally re-entering you discover that severe fire damage as well as water damage has occurred to your belongings thus destroying most. You will have to find temporary living arrangements and replace almost everything you own.
It is a common misconception that a landlord’s insurance will cover that type of loss. In fact, building owners carry insurance that covers the structure and equipment (such as appliances) only. Do not wrongly assume that you didn’t need renters as you will quickly learn that the damage to your personal property is not covered. All contents housed within the walls are the responsibility of the renters or lessee.
Renter’s insurance can also help protect you if you are sued due to accidents that occur at your apartment. A typical scenario might start with an invitation to several people to enjoy a party at your home. At the end of the event several of your guests leave with a blood-alcohol level higher than allowed under state law. Sadly, they are in a severe car accident resulting in many injuries. Found liable for serving alcohol and allowing people to leave drunk, you could have to pay legal fees plus any monies awarded to the victims. If you have renter’s insurance, the insurance company will provide legal protection if the claim is covered. The general liability portion of your renter’s policy will also cover any monies awarded up to the limit purchased on your policy.
An important option available on renter’s insurance is full replacement value coverage. This coverage provides full replacement value for most of your belongings. You will be reimbursed the cost to purchase new items that are comparable values. An example would be if you had a large screen TV that was for five years old. Your insurance would cover the cost for you to purchase a new large screen TV of like kind and quality. If this inexpensive option is not taken, the insurance company would depreciate the value of the television set plus minus your deductible and pay you the difference. This amount of money would not be enough to replace your television set.
Another option that you can add to a renter’s policy is scheduled personal property such as jewelry, guns, furs or other collectibles. You will need to get the items appraised and then the insurance company will insure them up to that amount. This is a very valuable option. If you were to lose a diamond ring or even the diamond out of the setting, it would not be covered under a standard renter’s policy. With the scheduled personal property option, your ring or your diamond if lost or stolen would be replaced with the same like kind and quality as you had.
In any of these scenarios, you could have help recovering from this scary nightmare. Renters insurance provides coverage for your personal possessions. Under both of these conditions, you could easily spend thousands of dollars to get back into the financial condition that you are in before the loss. With the cost to replace the average renter’s belongings at about $30,000, the cost of renters insurance seems a small price to pay for peace of mind. Renter’s insurance can ease your worries in the event that something goes wrong. We at Brownell Insurance will gladly answer any further questions that you may have. Please feel free to call us at 603-437-1992. You might also be pleasantly surprised that many of our companies will also give you a discount on your auto insurance if you purchase renters insurance. Give us a quick call today!