Renters Without Insurance Ignore the Enemy that Threatens Their Castle
In ancient times, a quest was a time of discovery.
A kingdom required defending
A minotaur guarded an ancient treasure which only a hero could obtain
Are these quests gone forever?
No, not necessarily; there are still real world quests to be had, but many of these sit within easy reach, right from the comfort of your home.
That’s right, a quest is only a book away. Quests lie in spending quiet time at home, in watching an interesting TV show, in relaxing and enjoying conversation in your lovely living room, or simply in spending reflective time in your bedroom. But like in ancient times, threats to those quests do exist.
These threats take on the form of natural disasters, fires, theft and many other modern day disasters. These are events that can happen to anyone. So why is it that such an overwhelming majority of renters, almost 65% according to the Insurance Institute do not believe renter’s insurance is necessary?
The average renters insurance policy only runs about $20 per month, but despite its low cost, only a small percentage of renters purchase this type of insurance.
Is It Because It is so Cheap?
Might the reason for this oversight be because this insurance policy is so inexpensive? Sure, it is cheap because this insurance doesn’t cover structural damage as homeowners insurance would. But that doesn’t mean this type of insurance isn’t necessary. It is an important part of renting because it offers coverage for the loss of any of your items due to theft, structural damage or other reasons. In fact, renters insurance can be so crucial, that many property owners are now requiring renters to carry it.
Statistics show that renters outnumber buyers in most cities throughout the nation, yet so few carry insurance, and many don’t even realize they need it, not until an emergency happens. For instance, when hurricane Sandy hit, there was a huge number of renters who didn’t have coverage. It was a truly difficult time for many families, especially those who had to rebuy the entire content of their home.
What Does Renters Insurance Cover?
Renter’s insurance protects consumers against loss from fire or smoke, vandalism, theft, water damage, lightning, wind and even from explosion. The insurance covers loss of personal belongings, but in some cases coverage also pays for living expenses when you are unable to live in your home due to fire, hurricane or other disaster.
This insurance also offers liability protection which protects you against being liable for injuries anyone experiences while in your home.
Types of Renter’s Insurance Coverage
Most people assume that renter’s insurance is very simple. “You buy coverage for your things, right?” Well, in a way that’s true, but there are two types of policies. One is for an actual cash value. In other words, if something happens, the policy will pay for the replacement of the possessions up to the limit of the policy, but there is a deductible amount on the payout which accounts for the depreciation of your items.
On the other hand a policy that has replacement cost coverage offers you payment for the real cost of replacing your belongings, regardless of the depreciation value.
Final Thoughts
When you rent your home, having insurance is just as important as when you own your home. This type of insurance is relatively inexpensive but very useful should anything happen to the belongings in your home. However, you may need additional insurance if you have specialized high cost items such as expensive jewelry, art, musical equipment, collectibles and furs then you’ll need special insurance.