Should you have renters insurance? You actually don’t need to read the rest of this newsletter for the answer, which is YES.
What is Renters Insurance?
Renters insurance protects you against damage to your property and against potential legal liabilities. It’s almost always worth it. It’s affordable—about $16 a month on average—and it will protect you against unpredictable and potentially much higher costs in the future.
Even if you are fortunate to have the resources to pay out of pocket for costs related to damage, theft, or injury, renters insurance is a smarter way to cover those costs.
An insurance claim can cover your expenses far in excess of the premium, and you will be able to have budgeted for the premium instead of coming up with unexpected funds.
Some people think that renters insurance is just an unnecessary fee to cover events that are unlikely to happen. This may be true, but in the event that something catastrophic does happen, you can walk away with peace of mind knowing that your insurance will cover it.
For example, let’s say you are the victim of a theft, and you come home one night to realize that your TV, laptop, and speakers are missing. Combined, those three items alone have a value of over a thousand dollars. Without renters insurance, you’d be paying out of pocket to replace them. With renters insurance, you will just continue to pay your premium—about $200 per year using the average—and the insurance policy will cover your replacement costs, saving you over $800.
Types of Coverage
After deciding that yes, you need renters insurance, it’s wise to comb through your policy and know what is covered. Renters insurance offers varied coverage, including things such as personal property damage, personal liability, medical expenses, and additional living expenses.
- Personal property damage coverage will insure your items in the event of a loss, covering costs up to the stated policy limit.
- Personal liability coverage will insure you if you are held accountable for bodily injury or property damage, and medical expense coverage insures you against expenses incurred by guests injured on your property.
- Additional living expense coverage is very handy in the event of a fire, flood, or even something less catastrophic like a pest issue, as it will cover costs above normal expenses when you have to temporarily live elsewhere.
Carefully read your policy and become familiar with the ins and outs of what exactly your policy will cover, and what the monetary limits are for each type of coverage.
Purchasing Renters Insurance
Shop around when looking for the best and most appropriate insurance coverage for your situation. Your renters insurance will depend on a variety of factors, including 
your location and your claims history, but not all insurers calculate their rates the same way. Obtain quotes from various insurance companies, as you may be able to get a better premium price for almost identical coverage from a different company.
When evaluating your coverage needs, be sure to be realistic about the value of your possessions. Underestimating could lead to an inadequate coverage limit. Overestimating could lead to overpaying for unnecessary coverage. Do your research on personal liability coverage—most policies come with $100,000 in liability coverage, but make sure this is enough for your needs.
Analyze your deductible and make sure it’s appropriate for your situation, and be sure to inquire about discount eligibility. A higher deductible will decrease your premium and may make sense for your budget. Discounts may be available for bundling your renters insurance with your car insurance, for example. Don’t be afraid to ask questions and get what you need.
There are many factors when deciding on coverage limits, premiums, and deductibles, and if Deca Realty can help answer any of them, don’t hesitate to call us!
