How Much Is Renters Insurance and Is It Worth It?

When it comes to buying insurances, most of the Americans show utter negligence. According to the Insurance Information Institute, as many as 95% of the homeowners buy home insurances for the safety and security of their newly bought homes. But, such awareness is not present in mortgage lenders. As per one recent survey, almost 60% of the renters do not care about getting their assets insured. But, there are a few facts which you must consider about renters insurance policies before you take a final decision on it.

What is the Cost of Renters Insurance?

As per the National Association of Insurance commissioners, most of the renter’s insurance policies would cost only $15 per month. For example, if you lose a costly belonging, such as a car or a laptop, you are very likely to be charged more than $15. Therefore, renters insurance is very cost-effective yet highly ignored.

Let’s look at the reasons for which mortgage lenders, especially the young ones, avoid getting their rented properties insured.

What Are the Reasons for not Buying Renters Insurance?

1. Most of the Renters in Tucson and Phoenix feel that getting rented properties insured holds no importance and is rather a waste of money. But, quite to the contrary, any devastating disasters, such as fire or flood, can break out in the United States in less than 1 hour. Therefore, such thinking only reflects the misconception that nothing bad can happen to the rented properties.

2. As much as 16% of the renters feel that they do not need any insurance for their assets. They probably do not understand what such an insurance policy covers. They also think that the coverage of the insurance bought by the landlord is enough. But, when any accident happens, the insurance of the landlord only provides coverage to the building damages and no protection for the belongings of the renters.

3. Many of the renters also nurture a wrong notion in their minds that they cannot afford any renters insurance policy. But, according to Accounting Principles, the monthly charge of the insurance of the renters is similar to the cost of two movie tickets with $7.9 per ticket.

Therefore, you need to know the coverage scope of the renters insurance which would help you to take a positive decision towards better insurance protection.

Your Possessions Are Completely Covered

If a robbery happens in your rented house and you lose valuable items, such as jewelry, electronics, computers and other costly items, you cannot ask your landlord to give those back to you until you accuse him/her of any negligence which caused the robbery, such as the absence of the door lock, and prove it to the court. And, if you fail to prove it, you might end up incurring debts.

But, a renter’s insurance policy would ensure that your belongings are covered and protected. Moreover, you would also receive coverage if your possessions are damaged by any natural disaster, such as fire, vandalism, lightening etc. It is your duty to read the insurance policy manual very carefully to know what disasters are covered by your insurance planning.

Your Personal Belongings Would Be Safe Outside Your Home

Most of the renters insurance would pay you the same price if your belongings are damaged inside the house or are stolen from outside. But, your policy guidelines would determine whether you would be paid the actual cash value or replacement cost only in case of damages.

Get Any Extra Expenses Paid

The renter’s insurance policy provides you the money for any extra expenses as well. For example, if your rented house and personal belongings are damaged by any disaster which prompted you to shift to a hotel along with your family, your expenses are likely to be covered by the renters insurance. Any disruption in the flow of getting the daily utilities, such as water and gas, would be taken care of by these insurances under loss-of-use coverage.

Get Additional Financial Protection for Others

If your friend hurts himself inside your rented house, it makes you liable to bear the medical costs. And, if they file any lawsuit against you, you become more financially vulnerable. But a renters insurance would cover up these liability costs and would also pay you for the damages in the building.

Get Covered for The Damages Done by You

We are all prone to accidents. For example, you might accidentally damage the electrical unit of your neighbour while watering your plants or drive your car right into their fences. But, renters insurance would not let you pay these expenses from your pocket. But, if your window is broken by your neighbour who does not have a renters insurance, you are likely to pay the cost all by yourself.

Visit Us: Get the Best Renters Insurance Coverage

We, at Coda, care for your finances and liabilities and understand that you cannot afford to stay without a renters insurance. When you decide to buy an insurance policy for your rented property, the most crucial decision for you would be to determine the coverage limits for your liability and personal property. Our property management experts would assist you in understanding your property needs so that you get the best renters insurance policy for future. Let us help you in protecting more than just your rented property. Contact us today!