Renters insurance and 4 reasons you need it
You need renters insurance because it's well worth it to plunk down the small monthly payment to cover yourself should the worst happen.
As college graduates begin to migrate from the dorms in a few short months, one item they may neglect in their move to the real world is a critical one: renters insurance. Renters insurance is an often-ignored insurance that covers everything from personal property to personal liability.
If you're renting for the first time, or have been renting for years without insurance, you'll want to consider purchasing some insurance. MSN.com debunks four myths about renters insurance, which just might persuade you to buy a plan:
1. My landlord's covered
In most cases, a landlord's insurance covers only structural damage to the building itself -- and many landlord policies don't even go that far if the damage is caused by a tenant. If you leave the tub running and it turns your floor into cardboard and dribbles downstairs, damaging your neighbor's couch, you may be liable for the whole drippy mess. If your building went up in flames, your landlord's coverage would include repairs, but only to the building, not to the possessions of tenants.
2. It's out of my price range
Is $10 to $20 per month too much? For lower rates, you can raise the deductible. For more protection, you can pay more for replacement-cost coverage where the reimbursement is based on today's replacement cost rather than original value.
3. I'm in a great building and I'm not worried about security
Renters insurance extends beyond on-premise theft and hazards. If your suitcase is stolen while you're on vacation, you'll likely be covered. Same with property stolen from your car. If you're prone to barroom brawls, you might need more help than renters insurance, but you'll probably be covered if you hurt someone. Speaking of injuries, you'll also likely be protected if someone slips and sprains her ankle at your annual dance-a-thon; you may even receive compensation for legal defense costs in the case of a lawsuit.
4. My stuff isn't really worth much
You might be surprised at how quickly all those books, CDs and kitchen appliances add up.
By Marshall Loeb, MarketWatch
That fire caused over half million dollars worth of damage to the structure alone. Fortunately, I had renter's insurance which cleaned and replaced all of my possessions since I had replacement cost coverage. However, I would have saved some time if I had previously documented what items that I had so that I would not have had to make a list at the scene of the fire.
April 26th 2008, i live in the Peachtree Apts in Norwich,CT. Due to a careless smoker, the whole building (120 apts) went up in flames in 20 mintues. Here is a link to some pictures
I had renters insurance, and it helped drastically. I am now living a normal life again, and i wonder if some of my former neigbors are getting by, since most didnt have any insruance.
WHEN U R READING THIS DONT STOP OR SOMETHING BAD WILL HAPPEN! MY NAME IS SUMMER I AM 15 YEARS OLD i have BLONDE HAIR ,MANY SCARS no NOSE OR EARS.. I AM DEAD. IF U DONT COPY THIS JUST LIKE FROM THE RING, COPY N POST THIS ON 5 MORE SITES.. OR.. SUMMER WILL APPEAR ONE DARK QUIET NIGHT WHEN UR NO
Thru Farmers Insurance, my monthly premium actually went DOWN because I added renters insurance. I was paying about 200 a month for 1 vehicle. After adding the renters insurance, my monthly premium for BOTH went down to about 180, then I added another vechicle (2 car discount) and the premium for all 3 policies went down to 150, go figure :-) Then a 10 percent discount for having it automatically deducted from my checking account each month - hey! you have to pay your insurance on time anyway, right? And, the monthly deduction discount more than makes up for the $5 they charge me each month for "monthly billing" rather than paying the 6 month premium up front!
I'm an insurance agent and I will give you a claim that will reinforce the need for renters insurance. We had a claim last year and the house was totaled from a fire. Everything the tenant owned was destroyed. This customer has had renters insurance for around 20 years with us and pays about $18/mth for 50,000 on his contents and 300,000 of liability. The fire inspector determined the fire started from a pinched extension cord the tenant ran outside through the door. So, it turned out that he was now liable for this loss! We have rebuilt the house and replaced most of his contents and have paid out around $240,000 so far!! I would say it turned out to be the best investment he has ever made!! 20 years of renting and he had never lapsed that policy. You just never know!
It's a good idea to be sure, but compare, compare, compare. Did you know at an example that if the hot water heater leaks (from the upstairs apartment) and ruins stuff it may be "caused by a flood" and you won't be covered? Also USE your digital camera to record what you do have. Also, pay for "replacement" value not "market value". The 5MP digital camera you bought 5 years ago for $900 is worth about $50 in today's electronic market. If you have "fair market" value insurance, you'll get the $50, not what it costs to replace the items. Like any insurance, read the fine print. $25 a month might be cheap, but if it only covers dust mites it's worthless isn't it?
the revealing statements are not getting posted... You can sure tell this is an insurance sponsored page....sick sick sick
I don't know what state the author is referring to, but in New Jersey renter's insurance is a double edge sword. While you may have piece of mind knowing you have the insurance if you ever have to file a claim it may very well be your first, last and only claim you file or ever have. When you file a renters insurance claim - you are essentially "blacklisted" and/or your policy may not be renewed. The insurance companies will gladly issue you a policy and take your premium [money] but when or if you file a claim they penalize you and like credit card companies it has a domino affect - if you file a claim your name goes on a list and depending on the amount of your claim (or why you filed it) you may not be able to get your policy renewed or obtain insurance through another carrier. It makes you wonder if its worth having a policy at all! Personally, I think renters insurance market in NJ is a racket. Perhaps the renters insurance carriers in NJ are students of Bernie Madoff.
We are a military family and mostly live in government housing, most are now managed by private companies that have some type of ins....but it's nothing like having your own renters policy!!
We were living in PPV Military housing in San Diego, CA but the housing was not on a military base and we had to park one of our cars on the street, it was broke into and stereo system, cell, wallet, CD's (yes my husband left his wallet in the car) was all taken. Our renters policy with USAA covered the items taken while our auto policy also with USAA covered the damage to the car and the stereo stuff. We will never be with out renters ins for as long as we rent!! and like some others were saying get your polices together and you'll get a discount.
Last week, there was a fire in my apartment building. Luckily no one was hurt and our stuff is salvageable, but there was some smoke damage in our apartment. Of 12 apartments in the building, we were the only tenants with renter's insurance. We had to take time off work to clean and move stuff around, do countless loads of laundry, get all of our furniture cleaned, etc. But because we had renter's insurance we will be reimbursed quite a bit of money for our damages. Unfortunately, the girl who had the fire did not have renter's insurance and lost everything in her apartment:( Please, please if you are renting get insurance!!! You're possessions may not look like much until you have to clean them all or replace them.
cmrinseattle - actually, many homeowners/renters policies have an expansion endorsement (usually very cheap, around $5-$10 a year) that will increase the coverage for jewelry, coins, etc.
We were recently robbed, and I thought we had a limitation of $1000 for jewelry. However I had bought the expansion / enhancement form, and my jewelry limit was increased to $10,000.
Of course it wasn't paid out on replacement cost, but it was still better to get a check for 1/2 the amount ($5000) instead of a check for 1/10 the amount ($1000).
It's a very good deal. It also paid for damage to my apartment when my aquarium broke; otherwise I would have been forced to pay it.