Perhaps one of the best deals around, it pays to have renters insurance. It doesn’t matter if you don’t have a lot of items to insure or they’re a little outdated, maybe even downright old. For less than a dollar a day, you’re covered. If someone’s hurt in your place, you’re covered. Maybe a water pipe bursts in the apartment upstairs, or you become a victim of theft or vandalism; you’re covered. For a small investment, the amount of peace of mind you gain is huge.
Ann Kuiper, Personal Lines Department Manager for Nulty Insurance Agency, shares why it’s important to carry renters insurance, even if you don’t plan to stay in your place for long.
The benefits of renters insurance.
Rental insurance is one of the most affordable policies you can buy. You’ll feel secure knowing your personal possessions are protected against fire, certain natural catastrophes, and theft. Perils covered under a typical renters policy for contents include: fire, lightning, windstorm, hail, explosion, aircraft, vehicles, smoke, vandalism, theft, falling objects, weight of ice or snow, water damage (not flood) from an appliance or plumbing, and, an increase or decrease of electrical current, and liability.
If something happens to the items in your home or apartment from one of these risks, you will receive reimbursement to replace your possessions; however, be sure to select coverage that offers the replacement value. You’ll get the most for your money and possessions will be replaced at today’s prices.
Rental insurance also protects you against a lawsuit for an injury that may occur on your property. Called liability protection, it offers assurance and protects you financially in case someone gets hurt in your home.
It covers a great deal for not a lot of cost.
Renters insurance is inexpensive. In fact, a basic policy which includes the replacement cost for possessions can be purchased for as little as $200 per year – or even less. If you have renters insurance with the same company as your auto insurance, for example, you may qualify for multi-policy discounts on your auto insurance for more savings. That discount alone may nearly pay for the cost of your rental insurance.
Consequences of not having insurance.
You could lose all your possessions in a catastrophe, such as a fire or tornado. A burglar could take your most valuable items. Expensive electronics can be damaged by a storm. Someone could be hurt on your property and sue you to pay their medical bills. When you don’t have adequate coverage, you put yourself at risk financially. If your items are a total loss, without insurance, you’d have to buy all new items for daily living out of your own pocket. If someone sues you, you can be wiped out both monetarily and emotionally.
To determine the amount of coverage you need, an inventory of your contents and their value is the most accurate estimate. Even if you’re living in an apartment for just a few months, you should have coverage. If you’re a student, don’t assume you’re automatically covered under your parents’ home policy.
Your landlord may be the best, but has no responsibility to insure you or your belongings.
When a landlord purchases a rental property, such as a house, he or she will purchase insurance for structural damage. But they will not carry any coverage for contents, possessions or a renter’s personal liability. So even if your landlord is trustworthy, they have no reason to insure you or your belongings. It’s up to you.
Do many forgo renters insurance?
Statistics show that nearly two-thirds of renters in the U.S. do not cover their belongings or personal liability with rental insurance. The reasons are many. Probably the main one is a lack of awareness or not realizing what an affordable value the insurance provides. And many people just assume nothing drastic will happen to them.
Don’t get burned by faulty assumptions:
- I don’t have enough stuff to insure.
- It’s not worth the cost.
- My landlord’s insurance covers it.
- I’m not going to live here long.
- It’s more hassle than it’s worth.
- Too expensive.
- I won’t get sued; I don’t own the place.
- My TV and other electronics are too old.
- My dog doesn’t bite.
- I’m covered under my parent’s (or roommate’s) insurance.
- The neighborhood is safe.
- My friends are not accident prone.
At Nulty, we recommend you review your insurance needs annually or anytime you have a new life event, like moving to a new place. For a quote on renters insurance, stop in and we can go over your situation and appropriate coverage amounts – to protect both you and your belongings.
About Nulty Insurance Agency
Founded in 1945 by Greg Nulty in Otsego, Mich., Nulty Insurance focuses on bringing clients the best products with the most personal service in the insurance industry. The agency has remained a family-owned business, committed to building a reputation for being ‘simply the best’ agency in Southwest Michigan. Since the agency’s beginning, it has continued to grow with the changing insurance and economic environment and, of course, the needs of its clients. All ECCU members receive up to a 10% discount on a range of insurance products. Call Nulty at 269.488.0345 or visit www.nulty.com for details.
Note: This is a summary only and for details about your specific policy, you must contact your insurance agent.