Some landlords require renters insurance but even if it’s not required, it is highly recommended to protect yourself from any unforeseen circumstances.
What does renters insurance cover?
Renters insurance covers your personal property, liability and living expenses after loss. Your personal property includes everything that you own inside of your rental unit. If you took the roof off the building and shook it, items that would fall out are your personal property. These may include electronics, furniture, clothing, etc. It is important to understand and document what you own as you will want to have the proper amount of coverage in the event of a disaster at the facility you are renting from.
If there was a break in to your rental unit and you had belongings stolen or a friend came over and tripped over a cord and injured themselves, your renters insurance would protect you.
What factors are renters insurance rates based on?
Rate factors can vary on a variety of different items. The value of personal property you want to cover and how much liability you choose are just a couple examples.
Coverage amounts vary. For instance, a single individual who just graduated college might not have a lot of personal property in their rental unit in comparison to a family whose personal property has accumulated over the years. Think about the value of everything you own. If something were to happen, what would it cost to replace everything?
The deductible amount you choose can also affect rates. In the event of a loss, this is the amount you will be responsible for out of pocket before insurance will pay. For example, if you had $20,000 in losses from a fire to your personal property with a $2,500 deductible, you would most likely only receive $17,500 after the deductible has been subtracted from the total loss.
How much does renters insurance cost?
Renters insurance is very reasonable, sometimes less than $1 each day. The average cost varies for each individual based on the factors described above. Our agents will work with you to customize your specific policy.
Author: Blake Frederick, Sales Trainer at Rural Mutual Insurance Company