Interestingly enough, renters insurance is one type of coverage surrounded in mystery. Many people renting their apartment or home don’t have coverage and don’t understand why it’s needed. Yes, there’s a lot to think about when you move into a new place. However, you don’t want to make the mistake of neglecting renters protection.
Are you wondering why you need renters insurance in Colorado Springs? Not sure what it covers or why your landlord’s policy isn’t enough? Let’s discuss the ins and outs so you understand what’s important when it comes to a renters insurance policy.
Why Renters Insurance is Needed
Ask yourself this: Do you have enough money to replace all your personal belongings if they were lost in a fire or stolen?
Your landlord’s insurance doesn’t cover your personal belongings. It covers any damage to the building itself in the case of a disaster. Everything inside the dwelling is your personal responsibility. That’s where your renters insurance policy, also called an HO4 policy, comes into play.
What if you did something that caused damage to the belongings of someone else? Let’s say you fell asleep while filling the bathtub for a late night bath, and it overflowed water into the neighbor’s apartment downstairs. How would your finances handle the costs involved with paying for damage to their belongings or damage to the building? What would you do if they sued you? All of this is covered if you have renters insurance.
Let’s talk about how your policy works and what is covered by its protection.
Most policies have a limit applied when it comes to covering certain kinds of personal property. For example, you might find that jewelry and furs are covered up to a limit of $1,500 or electronics up to $2,500.
Don’t worry, however. You can buy what’s called an additional personal articles add-on that adds the appropriate coverage to items that your normal policy places limits on. If you own an expensive flat-screen TV, laptop or jewelry, then consider this type of add-on. It only costs a few extra dollars per month but will come in handy in case of a disaster.
Keep in mind that most renters policies limit their coverage to fire, theft, power surges, vandalism, water damage, and other types of events that you don’t have any control over. They don’t usually cover events such as earthquakes, floods, or mudslides. If you live where this may happen, then consider a separate policy that covers those specific situations.
The liability part of your renters coverage steps in to pay when you’re at blame for property damage or bodily injury. An example of this might be if you left your stove on and it caused a fire. If your neighbors experience property damage as a result of the fire, your coverage steps in.
Loss of Use
What happens if you need to live elsewhere after a fire in your building, for example. Your Loss of Use coverage on your renters policy will help pay for food, hotel stays, and other types of expenses you run into as a result of the insured event.
There are other coverage types that your renters insurance policy helps pay for.
– Medical payments to others: This pays out if a visitor to your home suffers an injury.
– Property of others: What if your friend stays the night and a leaking pipe ruins their cell phone? The “property of others” coverage replaces it.
But Isn’t This Coverage Too Expensive?
Did you know that the average renters policy costs less than $200 per year? Compare that to your auto insurance or health insurance and breathe a sigh of relief. Luckily, renters coverage is quite affordable.
You might be surprised to learn that the average two-bedroom renter owns around $30,000 worth of personal property.
For this reason, $50,000 is a good limit for apartment dwellers. Consider limits up to $100,000 when renting a house. The first question your insurance agent is most likely going to ask you is how much you need for property damage coverage. Now, you’ll know how to answer that question.
It’s a good idea to take pictures of all your most important belongings. Include a video sweep of your property, as well. This helps you remember exactly what you owned in the case of filing a claim after a fire, etc.
Now you know what this is such an important area in your life. You never know when disaster may strike but you can make sure you’re covered, just in case. Consider getting your renters insurance in place immediately. The peace of mind it supplies for less than a tank of gas per month is priceless.