What Is Renters Insurance, and Do I Really Need It?
There have been some concerning reports in recent years that suggest a lack of awareness amongst renters about the importance of renters insurance. Simply put, the question for renters should not be if they need renters insurance, but rather what level of coverage should be in their policy.
Let’s quickly walk through the policy type basics to help you make a cost-effective policy selections.
Types of Coverage
At its core, a renters policy is an inexpensive form of insurance that protects the policy holder from two main types of damage: personal property damage and liability.
Personal property damages are those that occur to the policy holder’s personal belongings (such as clothing, electronics, etc.) as result of a flood, fire, or another disaster as specified in the policy. There are various levels of protection available; this enables the renter to only purchase as much coverage as they need.
Liability damages can apply to both people and property, and arise from claims made for which the renter is found liable. For instance, if a tenant accidentally left the stove on overnight and caused a fire, he or she could be found liable for the resulting damage to the rental home. A tenant could also be found liable if his or her negligence on the premises resulted in an individual’s bodily injury.
What Level of Coverage Is Right for Me?
Choosing the coverage level comes down to a cost-benefit analysis based on your own personal situation. For instance, if you are a college student with minimal personal property, you may require very little (or zero) personal property coverage. That being said, it is almost always a good idea to have some level of liability protection as liability damages are unpredictable and have the potential to get very expensive.
Because each person’s situation is unique, contact our professional team of trusted advisors to discuss a plan based on your needs today!