Why You Need to Protect Your Valuables with Renter's Insurance

The number of Americans who rent their homes instead of own them are on the rise. Renting is an affordable way for everyone to keep a roof over their head. By renting a home, you don't have to worry about the costs of maintenance and upkeep on the building and on the property. Renters don't have to pay property taxes either. And, you don't have to worry about obtaining home owner's insurance coverage, so there are added savings there. If the home or the property is damaged, the landlord's homeowner insurance will cover the cost of the repairs. However, one thing that renters often fail to realize, is that the landlord's insurance won't cover the contents of the home. At least, any items that are owned by the renter. Therefore, if you rent your home, you need to know why you need to protect your valuables with renter's insurance.

You may think that getting renter's insurance would be a waste of your money. A survey conducted for the Independent Insurance Agents & Brokers of America (IIABA) revealed that almost 66% of American renters feel the same way.
Afterall, what are the chances of your valuables being stolen or damaged? Actually, they are pretty high! Especially when you consider the risks of robbery, vandalism, fire and smoke damage, lightning strikes, windstorm, hail, ice, sleet, snow, explosions, and vehicle and aircraft accidents happening to your home. (If you noticed that "earthquakes" and "flooding" aren't on the list, that's because protection from these natural disasters require a special type of insurance policy.)

Think about it this way, if something happened to your valuables- furniture, clothing, televisions, stereo, VCR, DVD Player, jewelry, computer, other personal belongings, and maybe even personally-owned appliances, without the advantage of having renter's insurance, you would have to replace the items yourself. Your landlord's insurance will cover the cost to repair or replace your home, but it does not cover your possessions. Do you have thousands of dollars available to replace your belongings?

Besides believing that the landlord's insurance will cover their items as well, another mistake renters make is assuming they can't afford renter's insurance. Actually, renter's insurance is an extremely affordable way to protect your valuables. My retired uncle rents an apartment and lives on a fixed income. His renter's insurance premium costs him less than a hundred dollars a year. Although he lives on his Social Security income, even he can afford to pay for renter's insurance. He says its "more than worth the peace of mind" the insurance offers him.

Of course, the actual cost of your renter's insurance will depend on the area you live in, the amount of your deductible, as well as on the coverage you need. You'll need to purchase a policy that will cover everything you own inside your home. If you have expensive jewelry or a rare piece of art, for example, you'll probably have to place that under separate coverage.

The average American renter pays an insurance premium of about twelve bucks a month to protect their valuables, according to the Independent Insurance Agents & Brokers of America (IIABA). That $240 a year provides about $30,000 of property coverage or content replacement coverage. It also includes an estimated $100,000 of liability coverage as well. Liability coverage can protect your valuables in another way. If a visitor falls in your home and injures themselves, the liability insurance coverage will cover the accident up to the limit of the liability coverage.

To keep the cost of your renter's insurance down, get the highest deductible possible. The "deductible" is the amount you pay before your insurance coverage takes effect. The average deductible is $1,000.

Some insurance companies give discounts if your home is equipped with smoke alarms, burglar alarms, fire extinguishers and other "protective devices." So, keep that in mind.

To find the right renter's insurance for you, contact the agent who already handles your vehicle insurance. Often, companies will give policy holders a discount if they carry two or more types of insurance with the same company. Or, if you don't own a vehicle, check with the company that carries your life insurance.

You can also check with your neighbors if you live in an apartment complex. Or check with family members or co-workers who rent also. Ask them which insurance company they deal with, what type of coverage they have, and the cost. This will give you some comparisons so you can make an educated decision.

In order to further protect your valuables, it would be a good idea to take an inventory of your personal belongings. Photos of the items or a video tape, along with detailed descriptions of your valuables would also help make filing an insurance claim easier.