While about 95% of homeowners carry insurance to cover theft, fire and losses due to natural disasters, only about 41% of renters carry any insurance at all. This can be a costly oversight.  As a renter without renters insurance, you may be leaving all of your possessions at risk of theft, vandalism, fire, lightning or water damage

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Take into account what it would cost you to replace everything that you use every day: clothes, electronics, small appliances, jewelry and more. Individually, they may not seem like extravagantly expensive items. Collectively, however, what would it cost to replace them? If they were gone tomorrow, would you be able to afford even the minimum amount of possessions needed to live day-to-day?

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Also consider how you would pay for temporary lodging should there be a fire in your apartment, and what you might be liable for should someone become injured on your property.

How Much Coverage Do You Need?
It wouldn’t make much sense to buy a $10,000 policy when your home entertainment center is worth $5,000 alone and the total value of your belongings is more than $30,000. At the same time, you may not need a $100,000 policy.

Many people can be surprised when they add up the value of everything they own. Yes, doing the inventory can be a tedious job. But knowing what you own is vital information when determining the amount of coverage that you need.

What’s Covered?
The majority of renter’s insurance policies will pay for damage to personal property, provide you with liability insurance if someone is injured or their property damaged while they are visiting you, and cover the cost of temporary housing should your home or apartment be uninhabitable due to a peril covered by the renter’s policy.

Most renters’ policies will cover damage from fire and theft. The perils covered can vary from policy to policy, though. Some policies can cover risks such as identity theft.

As far as coverage amounts, some policies will only cover the actual value of your belongings, while others cover their replacement value. Ensure that you carefully read what is and isn’t covered.

To learn more about renter’s insurance or to make sure you are protected, contact your local agent.

For questions about this article or renters insurance, please call our agency at 732 832 7546.
20 Commerce Drive NJ 07016
Article and photo courtesy of Selective Insurance.