When you get a new apartment, you should know how much coverage you need. Here’s your guide to the best renter’s insurance coverage amount.
There are more renters in the United States right now than at any other point in the last 50 years.
This phenomenon has come about for a variety of reasons. Skyrocketing home prices, a growing appreciation for location flexibility, and many, many more.
At the end of the day though, no matter what your reason is for renting, we can’t stress enough the importance of renters’ insurance. Renter’s insurance gives you peace of mind in knowing that the things in your home that matter most will always be protected.
If you’re thinking of getting a renter’s insurance policy, you may be asking yourself, “What is the right renter’s insurance coverage amount for me?”
To help you answer that question, our team is going to give you a brief overview of renter’s insurance coverage and then make our recommendation on how you can come to a great coverage amount decision!
What Is Renter’s Insurance?
No insurance policy can prevent adversity from occurring. And when it happens, it can be expensive.
Imagine a pipe bursting in your home that ruined your entertainment center or theft leaving you without any furniture. With a good renter’s insurance coverage amount, you can rest assured that the toll adversity takes on your home will be absorbed.
Therein lies the value or renter’s insurance.
Renter’s insurance, simply put, is a safety net for your belongings and financial livelihood.
What Exactly Does Renter’s Insurance Cover?
While renter’s insurance can offer comprehensive protection to policyholders, it’s important that you know exactly what your policy will and will not cover. It’s difficult for us to draw clear lines here given that ultimately, what’s covered under your policy can change from provider to provider.
Still, as a general guideline, below is what you may be able to expect:
Covered: Personal Property
Personal property is the obvious coverage benefit you can expect when you get the correct renter’s insurance coverage amount.
Personal property can include furniture, electronics, kitchen equipment and more.
Loss of property can result in a few different covered ways. For example, common property loss claims are made as a result of fires, windstorms, lightning, smoke, vandalism, riots, and theft.
Be sure to note how much your policy will reimburse you per item. If you have a very expensive piece of jewelry or a similar object that has a value in excess of your per item policy limit, consider purchasing additional coverage for that particular item.
Covered: Temporary Living Expenses
If your apartment becomes uninhabitable due to a covered circumstance, many renter’s policies will provide you with the money you need to find dwelling in the interim.
Covered: Liability & Medical Expenses
Many renter’s insurance coverage amounts include liability and medical coverage. For example, let’s say you’re hosting a party in your home and a friend slips and falls. If that friend should choose to bring legal action against you, your policy may cover resulting expenses.
Not Covered: Some Natural Disasters
Many general renter’s insurance products do not cover certain natural disaster-related occurrences. If you’re in an earthquake or flood-prone area, for example, you may need to purchase a separate policy for those disasters.
Not Covered: Utility Outages
If your unit’s power, water or heating goes out, rental insurance won’t likely cover temporary living expenses or resolution costs.
Not Covered: Bugs
If you need to move into a temporary dwelling due to a bug infestation, your renter’s insurance policy more than likely will not compensate you for expenses incurred.
It is vital that you read your policy and talk with your insurance provider to better understand what unique provisions their policies contain. The above “covered” and “not covered” suggestions are only for example purposes.
What is the Correct Renter’s Insurance Coverage Amount For Me?
Now that you have a little more perspective on what renter’s insurance is and what it can and can’t do for you, it’s now time to address the question of renter’s insurance coverage amount.
In short, there is no one size fits all answer to getting the perfect insurance amount. At the end of the day, you will want to make sure your insurance limits can cover the total amount of potential losses you could incur in the case of a covered event.
Our recommendation is to take a couple of minutes and walk around your house to note and take pictures of all of your valuables. Then, make an estimate of how much each of those valuables costs.
Add to that the cost of more extraneous things like clothing and miscellaneous furniture.
Once you’re done, you’ll have a decent idea of how much money you’d need to replace your belongings. Armed with that, you can purchase a renter’s insurance coverage amount that’s slightly higher and feel confident in your protection.
So, In Conclusion, Do You Need Renter’s Insurance?
Yes. If you’re renting a home you should be covered by a renter’s insurance policy.
We get it, most people don’t think that adversity is going to strike them. Still, theft, fires, burst pipes, injuries, and other insurance covered events happen to hundreds of people on a daily basis.
Don’t roll the dice with your financial future. Protect the things that mean most to you. Figure out a good renter’s insurance coverage amount and buy your policy today!
For help discovering and purchasing the best renter’s insurance you can get, our team at Chip Berry Insurance can help.
Our team of insurance experts has been protecting renters like you for years. Let us take our expertise and do the same for you.
Click here to learn about and get your renter’s insurance policy!