Well, now we know the main reason property management companies want tenants to have it. But c’mon, what’s the likelihood of Tom Mailman breaking his back and suing everybody? What’s really in it for Joe Tenant? Let’s find out.
In addition to covering liability, renter’s insurance also covers YOUR STUFFF. That’s right, your personal belongings are covered in case something happens to them. What does this mean exactly?
There are many different companies and types of renter’s insurance but they all cover your belongings in a similar fashion. Basically, they agree to replace your stuff if a loss occurs due to a covered peril. Well what the heck is a “loss” and “covered peril”? A loss can be looked at as destruction or theft. Now, just because your stuff is destroyed or stolen doesn’t mean it is automatically covered. The damage must come from that “covered peril”. Simply put, insurance companies have a list of things they will and will not cover. Everybody covers fire and theft, but the better companies cover much more.
Making sure you choose a good insurance policy can be the difference between getting nothing, replacing your belongings with brand new items, or getting used items from the thrift store. The lowest level of policies usually only cover fire and theft from the house, that’s it. The better policies can cover much more. The range of covered perils can include fire, theft, theft from vehicle, theft from your person, wind, hail, rain, water damage (not from a flood), a truck smashed into your house and busts the TV, the weight of the snow on the roof caves it in and ruins your laptop, etc. You get the picture. There’s also some nifty language tucked into those policies about HOW they replace your stuff too. You want a policy that has REPLACEMENT COST and not DEPRECIATED VALUE. If you have replacement cost, you get paid the value of what it costs to replace the items. If you have depreciated value, you get the pawn shop trade in value. You get what you pay for.
Well, what should you pay for renter’s insurance? 10-20 bucks a month should get you excellent coverage amounts for your belongings on a very comprehensive policy. Companies base the price on 1) How much stuff you want to insure 2) Your insurance claim history and 3) Your credit. I’ve personally seen the best policies and rates from State Farm.
Well folks, now you know. After understanding what renter’s insurance is and what it can do for you, do you believe it is worth it? Leave a comment below or feel free to ask some questions!We always have tenants best interests at heart, if you would like to see our available units please visit our Rentals page. If you haven’t done so already, please like and follow the page to stay informed and exposed to new opportunities!