What are the Benefits of Purchasing Renters Insurance?
When you rent a home or apartment, your initial thoughts might not involve the idea of a catastrophic event occurring because after all, what are the odds that it would actually happen, right? Well, according to a report by the National Fire Protection Association (NFPA), 1 in 4 people will experience a fire in their home over the course of their lifetime; and in our opinion that is one times too many.
So how is purchasing Renters Insurance going to help me?
Simply put, there are 2 major coverage components to a Renters Insurance policy, Personal Property Coverage & Personal Liability Insurance Coverage. In order to help you understand the massive benefits of having renters insurance here is a breakdown of the coverages, what they mean and most importantly why you should have them.
1. Personal Property Coverage
Renters Insurance helps you to protect your possessions in case of an emergency or disaster. Truth be told, disaster can affect anyone and strike at any moment in a multitude of ways such as: fire, lightning, windstorm, hail, explosions, vandalism, falling objects, freezing, smoke, burglaries and more, which is where our first major coverage component, Personal Property Coverage, comes into play.
In short, Personal Property Coverage insures the contents of your home/apartment, like your furniture, electronics, clothing, etc. Whether you want to call it being over prepared, a worry wart or whatever terminology suits you, it's always better to be prepared than not, which is why it's important to protect yourself and your valuables.
Let's say you go on vacation for a couple of days only to come home and realize that there was a fire in your apartment building and many of your personal belongings were completely lost in the fire. In this case, if you did not have renters insurance, you would be facing the tragedy of having to come up with the money to start afresh and purchase all new things - which believe it or not is more expensive than you could imagine. However, if you had previously purchased renters insurance with Personal Property Coverage and say you valued all of your belongings at $20,000, then you would essentially file a claim and your renters insurance could help replace your belongings.
Let's go through another real life example to understand this better: If your home had a pipe in the wall that burst and caused your premises to flood, this would be considered water damage and your renters insurance would help cover the cost to replace your damaged items. It's important to note that renters insurance covers water damage but does not cover flood damage. For example, if a big storm blew in and began flooding your front yard and/or neighborhood and began making its way into your home, because the water came in contact with the outside ground before it came in contact to the belongings inside of your home it is considered flood damage and would not be covered by your Renters Insurance. In the case of a pipe leakage from your upstairs neighbor, that would be considered water damage because it was within the structure of your apartment/home.
You might be thinking, doesn't my landlord's policy provide coverage? Well, this is the most common misconception. Your landlord's insurance will only cover the structure. The same applies for Personal Liability Coverage; this is the second major coverage component in renters insurance.
2. Personal Liability Coverage
Personal Liability Coverage provides coverage for medical expenses for any guests that get injured in your home. One slippery kitchen tile or one wrong step is all it takes for it literally to go downhill from there. For someone who doesn't have renters insurance, it could mean that you'd have to dig deep into your pockets to cover any medical expenses. Without trying to point fingers for who was at fault for the incident, your personal liability coverage can help cover: expenses for medical, surgical, funeral services and more. Accidents happen and sometimes it's no one's fault and we get that.
On the other hand, what if your guest strongly believed that the tiny slip on the rug was no accident and wanted to pursue a lawsuit against you? Luckily, you would have Liability Coverage to keep you covered.
Your personal liability coverage will help cover any legal defense expenses that may arise.
Depending on your location, the amount of coverage and the deductible you put on your policy, the average cost of renters insurance is pretty affordable, at an estimated $15-$25 a month. If you measure that out, it's the same as making a couple of Starbucks and Whataburger visits throughout the month.
Think about the first time you bought your couch. Now think about your bed, pots, pans, TV, lamps. It was most likely a slow process in getting them rather than buying them all at once, right? But if an unexpected grease fire started in the kitchen that spread throughout your home, it would require starting from scratch. The ultimate goal of Renters Insurance is to get you back to where you were before the accident happened because even though you can't stop it from happening, you can at least soften the impact. Keep what you value protected and speak to your trusted A-MAX Auto Insurance agent at 800-921-2629 to figure out your personalized Renters Insurance policy.