Several recent studies have indicated that only a third of
all tenants have renters insurance. Respondents to these surveys often indicate
that they believe the coverage is too expensive or that the coverage is
provided by the landlord. Yet both of these assumptions are incorrect.
First, the average renters premium is approximately $185 per
year. In other words, you can get protection for your personal property and
personal liability coverage for as little as $15 per month. Second, your
landlord will likely have insurance, but it will only cover the house or
apartment structure itself along with the landlord's personal liability.
So here are some tips for you to consider concerning this
essential coverage.
- Create
an inventory of everything in your apartment and list the estimated cost
of replacing each item. Think in terms of replacement cost, without
factoring in any depreciation. This will help you determine the amount of
coverage to purchase.
- Take
pictures of your more valuable items and store these off-site, such as in
a safe deposit box at your bank, at a friend's home, or in an online cloud
storage website.
- Shop
around for coverage. Get quotes from at least three reputable insurance
agents and verify whether coverage is for 6 months or 1 year. Consider
getting coverage with your auto insurance company since you may be
eligible for a car/renter's discount.
- If
your financial condition is solid, consider a higher deductible for your
contents since this can reduce your premium significantly.
- Ask
about other discounts, such as ones for smoke alarms, sprinkler systems,
nonsmoking households, and security systems.
- If you
have high-value jewelry items, you may want to schedule those on a
separate policy or an endorsement to the renters policy for broader
coverage.
Copyright 2013
International Risk Management Institute, Inc.
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