Renters Insurance - Do You Need It?

July 18, 2012      

While the majority of American homeowners have insurance, only 31% of renters buy renters insurance. That number drops to 15 percent amongst Hispanic renters.

In some of the largest cities, renters significantly outnumber homeowners. In fact in 2010, an average of 60% percent of households rented their homes in large cities.

Renters insurance provides financial protection against the loss or destruction of your possessions when you rent a house or apartment. Your possessions are not covered by your landlord's insurance.
Renters insurance premiums are relatively inexpensive.

With renters insurance, your belongings are covered against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm and water damage (not including floods). Renters insurance also covers your responsibility to other people injured at your home and pays legal defense costs if you are taken to court.
 
Renters insurance also covers your additional living expenses (ALE) if you are unable to live in your home because of a fire or other covered peril.

There are two types of renters insurance policies:

Actual Cash Value - pays to replace your possessions up to the limit of your policy, minus a deduction for depreciation.
 
Replacement Cost - pays the real cost of replacing your belongings (regardless of depreciation) up to the limit of your policy.

If you have expensive jewelry, furs, sports or musical equipment, or collectibles, you may want to consider adding a floater to your policy. Most standard renter’s policies offer only a limited dollar amount for such items; a floater is a separate policy that provides additional insurance for your valuables and even covers them if they are accidentally lost.
 
If you are a renter, contact TriState Business Insurance for more information.

Wall Street Journal / Source Insurance Information Institute

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