According to the Pew Research Center, as of 2016, the number of renters is at peak levels. Nearly 43 million people are choosing to rent versus own. When thinking about insurance the typical renter, especially a young renter, may not even know that there are options available for them to protect their belongings as well as liability. This may not even cross their minds unless an apartment complex requires it.
Pause right there for a moment. An apartment complex may require tenants to have renters insurance, they may offer quick online options even, but they are not experienced in insurance. Some online quick solutions aren’t providing the personal property coverage you would want at claim time to replace your belonging. Why go online, when you have a team ready and available to talk through the coverage. Millennials are information seeking machines. They have the mindset to seek out information and make informed decisions. Don’t breeze through a quick insurance plan, keep that mindset for your insurance as well.
What do renters policies cover & how can it be personalized:
You get to state the amount of personal property coverage you would like. In a typical homeowners policy personal property is a percentage of the dwelling cost, not here. If you think you have $20,000 in personal property, you can get coverage for that amount. Don’t shoot yourself in the foot though think about all your things when coming up with a value: dishes, shoes, electronics, appliances, furniture, jewelry, designer bags, kitchen gadgets, home decor, etc. Everything you see has a value, and if it gets ruined, you wouldn’t want to be short in funding its replacement. Ladies your clothes, purses, shoes probably add up quicker than you think. Can’t leave the fellas out of this conversation, gadgets can add up too!
Typically we see apartment complexes request $100,000 in liability coverage. They want this in case an incident started by you or at your location spreads to multiple units. For example, a fire starts on your stove, but spreads to two other units and destroys the property of those two other families. You are responsible for the costs. Will $100,000 be enough? We recommend $300,000 and the price difference between the two values is minimal! You can triple your coverage at a very affordable rate. Plus liability doesn’t just cover you at your apartment. It goes with you everywhere you go in the US, outside of your car (your auto policy has it’s own liability limits). Say you are on vacation and that stove fire happens at your Air BnB, you are covered.
Just like any insurance policy you can choose a deductible that is comfortable for you. Your deductible is the price you would pay out of pocket for repair/replacement in the case of a loss. Like Dave Ramsey says, you should have an emergency fund when pursuing a debt-free life. Your emergency fund could be used to cover your deductible. If you have done your budget and your emergency fund in higher than $1000, then bump up that deductible and save yourself some in premium (your monthly or annual payment for the policy).
Scheduled Personal Property:
Newlyweds may choose to rent in their early years while they jointly save up to buy their first home. Can you schedule that precious engagement ring and/or wedding set on a renters policy? Of course! Check out our other blog to get more information about scheduling personal property.
Each carrier is different they could have different limits for stolen items, boats, etc. Look into your specific policy and ask our team for clarifications. Also, each company offers options to add on to your policy. Tailoring your policy to your needs is simple and still very affordable. Bigger picture, adapting your entire insurance portfolio to your needs is simple and still affordable.
Your coverage extends to your items that may be in storage because it all can’t fit in your rental property. Apartments don’t always provide enough room to accompany all of your possessions, so be comforted that even if your belonging are off the premises, they are still covered.
Renters policies are not tied to your lease. They are separate from your contract and are your personal policy. The cool thing is that if you move it is as simple as changing the address on your policy to continue your coverage. This is different from a homeowners policy. Homeowners policies are written for a specific address, renters are written for your needs as a tenant. These policies renew each year unless you notify your agent to cancel them.
Still have questions?
We hope this got you thinking about your coverage and maybe stirred up a few questions. Don’t be shy! Ask those questions and make sure you are getting the coverage you think you are getting. If you are currently with an online company and would like a policy review we have a team ready to look at it and answer any of those questions.
To get a quick review, you can email your current Declarations Page (the page that gives a brief description of your policy) to us at INFO@INSUREWITHDEAN.COM and use “Renter’s Review” in the subject line. If you are seeking renters insurance, (LINK) Contact Us here.
Did you know…
Why are we bringing up renters insurance in winter? Well, think about this, in the spring and summer, the housing markets are typically hot and competitive. Anyone would prefer more security of moving on a beautiful day. However, in the winter you may be able to seek out better deals on a rental unit. The landlord would prefer to have their property occupied through the winter months and is more likely to offer a lower rate for leases starting in winter months — just a little food for thought.