Imagine if you lost all of your personal belongings to a catastrophe such as a burglary, fire, hurricane, or other natural disaster? Repl...
Even more so, such a loss can be an extremely stressful time in your life. When we suffer a hardship like this, fear and panic set in immediately and we find ourselves asking questions like:
• Where will I find money to replace these things?
• Will I have to deplete my savings account?
• Will I have to dip into my retirement savings?
• Will I have to borrow from family or friends?
• Will replacing these items rack up credit card
debt? Homeowners are usually protected against such a disaster through their homeowner’s insurance policy. However, more Americans find themselves renting these days and it is estimated that over one half of all people who rent don’t carry any form of renter’s insurance to protect their belongings or protect them from liability. Jeff Moree, a product director for Allstate Insurance, explains that many people put off buying a renter’s insurance policy because they have misconceptions about this type of insurance.
With this in mind, let’s take a moment to look at some of the common misconceptions about renter insurance to make you more informed about this type of policy. Landlords have insurance, but their insurance covers the building and structure. Nothing in his or her insurance policy covers your personal property or protects you against a liability claim where you are found at fault. One thing that you should do when purchasing a renter’s insurance policy is to conduct a home inventory of your stuff and apply a value to each item. If you were to do that right you may be surprised at how much it will cost to replace the television, computer, clothes, furniture, jewelry, etc.
While there are some policies that will cover roommates and domestic partners, many will not. Most renter’s insurance policies cover the insured’s property only. The Department of Justice claims that renters are 79 percent more likely to be burglarized than homeowners. Even without that statistic to convince you, think about how often you see a home invasion that takes place in a gated community. It happens more often than we think.
Some insurance policies are really expensive but renter’s insurance is not one of them. Prices average between $160 to $350 per year for a policy and there are many ways you can negotiate a better price. While a renter’s insurance policy may not give you total comfort in the event disaster strikes, it can certainly give you one less thing to worry about.
