Don’t Overlook Renters Insurance

Renters insurance may well be the most overlooked insurance policy. While few homeowners would even consider not buying home insurance, tenants frequently do not purchase renters insurance. In fact, according to a 2014 Insurance Information Institute survey, 95 percent of homeowners had home insurance, while only 37 percent of tenants had renters insurance. But failing to purchase renters insurance can be costly.

Why Purchase Renters Insurance?

Many tenants may wonder why they need insurance. After all, the landlord owns the property. So isn't the landlord responsible for it?

While it certainly is true that the landlord is responsible for any damage to the property itself, he or she is not responsible for damage to a tenant’s belongings. So, if you are a tenant, and, for example, a fire rages throughout the property, then the loss of your possessions—your computer, your television, your jewelry and even your clothing—all fall on you. Worse still, after the fire, you will need to find another place to stay. So you book a hotel room. Now you have to incur these additional living expenses on top of the loss of your rental unit. It can all add up.

What Exactly Does Renters Insurance Cover?

Basic renters insurance generally covers four categories of loss:

Damage to or loss of personal property. If your apartment is burglarized or damaged, a renters insurance policy can cover the loss of your personal possessions.

Temporary Living Expenses. If your apartment undergoes covered damages, renters insurance can cover your additional living expenses, usually up to 24 months.

Personal Liability. If a guest is accidentally injured in your apartment and sues you, renters insurance can cover your legal costs.

Guest Medical Payments. Even if your accidentally injured guest decides not to sue you, he or she may incur medical bills. Your renters insurance can cover those expenses as well.

How Much Does Renters Insurance Cost?

Your premiums will vary depending on exactly what coverage you buy. However, the average renters insurance policy runs no more than about $184 a year, or about $15 a month. If you want to bring your costs down even more, make sure to let your insurance company know of any safety devices in your apartment that might reduce your risk of loss, such as a security alarm or a sprinkler system. The insurance company will account for the reduced risk when determining the premium on your policy.

Protect your belongings today. Call RCU Insurance Services at (707) 576-5120 for more information on Indianapolis renters insurance.