Renter’s Insurance: Do you need it and how much should you have?

One of the cheapest forms of insurance that consumers often overlook is renter’s insurance. For those renting apartments, townhome, or house, coverage is available to insure your personal property as well as a few other protections.

Who needs renter’s insurance: If you have accumulated a fair amount of personal property over your lifetime, then it is a good idea to insure it. Many consumers fail to realize just how valuable their ‘stuff’ is worth to them, until there is a flood or building fire and some (or all) of it is lost. Consider that you may have personal property that falls into several categories, including:

• Furniture (beds, couches, dressers, tables, etc.)
• Electronics (TVs, computers, printers, tablets, etc.)
• Clothing/Shoes
• Dishes
• Tools
• Paintings
• Jewelry
• Personal Items

When you add up all the stuff you have, you may be surprised to learn how much it is all worth. Try taking an inventory of your belongings and see for yourself. It is estimated that most renters have between $10,000 and $30,000 in personal property. That is a lot to replace in the event of a total loss.

One common misunderstanding is that a renter’s personal property is insured by a landlord’s policy. While there may be a handful of landlords that will carry coverage for their tenants’ belongings, most will not. Ultimately, you are the one responsible to make sure your stuff is insured.

What else does a renter’s insurance policy cover: Aside from your personal property, a renter’s policy also covers you in the event that you cause damage to the premises or someone is injured on your property resulting in medical expenses or even a lawsuit.

How much does renter’s insurance cost: Depending on the coverage limits, a renter’s policy usually runs anywhere between $10 and $20 a month. After you take an inventory of your belongings, estimate their replacement value and decide how much coverage you need. If your stuff is worth less than $10,000, the policy should cost you around $10 a month. If you have expensive belongings in the $25,000 to $30,000 range, then you can expect to pay around $20 a month to insure everything.

To find the lowest renter’s insurance rates for the level of coverage you need, it is best to shop around. Start with the company that currently insures your car. Many insurance carriers offer multi-policy discounts, so it is possible that the addition of a renter’s policy may offset most (if not all) of the cost of the policy itself. If you do not currently have auto insurance, start by talking with an independent insurance broker. Independent agents have access to several top area insurers, and can likely find you the best coverage at the best price to fit your situation.