Hey, Renter! Have you ever considered how much all of your belongings are worth? What if they were damaged or stolen, would you be able to pay to replace them? Look to renters insurance to help give you peace of mind. For around the price of a one-time pizza delivery, you could protect all of your prized possessions.
Renters insurance helps protect you from property damage or loss, as well as liability risks. However, according to the Insurance Information Institute, only about one-third of American renters carry renters insurance. The average annual premium for renters insurance is about $185 in the U.S., the Institute says.
Choosing an insurance policy can be overwhelming. As with any insurance coverage, you should speak with your agent to review what will work best for you, but you also should do some research on your own. What should you look for in a renters insurance policy? Here are four common features that should be on your radar.
1. Replacement Cost
Replacement cost refers to the money needed to replace lost items—instead of the insurance company reimbursing you for what the items would have been worth. This is important because the amount that the stolen or damaged articles would be worth is often considerably less than the cost of buying new ones. For example, the laptop you bought five years ago isn’t worth nearly as much now as it was then. So, if you have replacement-cost coverage, you can afford to buy a brand-new replacement laptop.
2. Electronics Coverage
Many renters insurance policies place a dollar limit on any item that falls under the ‘electronics’ category; therefore, you have to buy additional protection to make sure pricier items are adequately covered—like laptops, stereo systems and TVs. If you value your electronics, you should be sure that you have enough coverage.
3. Deductible
Before your insurer pays your claim, you’ll likely be responsible for paying a deductible—an established out-of-pocket sum for repair or replacement of something covered by your policy that’s been stolen, damaged or destroyed.
Usually, renters insurance deductibles range from $500 to $2,000. If you go with a low deductible, you’ll recover more money if you need to file a claim. Though, remember that the lower your deductible is, the higher your monthly premium will be.
4. Worldwide Coverage
Worldwide coverage protects your personal property wherever it is, like New Orleans or London. This coverage is available if you buy what’s known as a personal articles floater; it’s an added coverage for valuable items like jewelry or musical instruments. Renters insurance policies usually offer little coverage for such belongings ($1,000 per item, for example), so it may make sense to purchase a floater if you own high-value stuff.
Final Tip
Renters insurance is important for anyone renting an apartment or home, including college students. Be sure to do your research when looking for a renters insurance policy and speak with an insurance agent or insurance company representative when trying to decide which coverage is right for you.
Remember that if you’re putting any of your belongings in a self-storage unit, you should check with your renters insurance provider to find out whether those belongings are covered—and for how much. If you don’t think your renters insurance does the job, you may want to buy self-storage insurance. This coverage is available from storage facilities and independent providers.
Need more information on renters insurance or want to request a quote today? Call William Penn Insurance at 717-900-8658 or email WilliamPennInsurance@gmail.com. William Penn Insurance is a licensed independent agency serving renters in Pennsylvania, Louisiana and Maryland.