When you purchase a new home, it’s standard practice to buy homeowners insurance, as it is usually a requirement from your mortgage company. However, when it comes to renting, only 37% of renters are insured. Why is it that so many people choose to forego this important financial safety net? At Eastern Insurance, we hear many reasons why clients choose to opt out of renters insurance. Below are our top five reasons why all renters need renters insurance; we hope you will see the value this inexpensive policy will provide.
- Your Landlord’s Policy Won’t Protect You
The house or apartment you are moving into should be covered under an insurance policy, however, that policy does not protect your belongings the way a normal homeowners insurance policy would. A landlord’s policy will likely cover the structure, but nothing inside it, including you. If the worst happens, do you have the finances to replace your laptop, TV, valuables, furniture, clothes, and more? In the event of a loss, only a renters insurance policy will protect your possessions and give you the peace of mind knowing you can replace them.
- You Have More ‘Stuff’ Than You Realize
The most common reason we hear renters passing on renters insurance is, “I don’t have enough stuff to make it worth paying to protect it all.” This often isn’t the case. Take a moment to think about every single item you own: electronics (televisions, tablets, smartphones, speakers), furniture (couches, tables, chairs, lamps, rugs), clothing (jeans, shoes, shirts, winter coats) and accessories (watches, jewelry, purses). You’ve likely acquired these items over several years, many of them being gifts, hand-me-downs, or your own quality investment pieces. Now, imagine they’re all wiped away by a fire in your building. Could you afford to replace everything? Would you want to?
Getting the right renters insurance coverage could provide you with tens of thousands of dollars in replacement coverage for your personal property. In the event of a loss, you’ll be able to buy a new couch for your living room, even if you got your original couch from your parents’ basement. If you’re still not convinced, do a quick inventory of your belongings, and see how quickly their value adds up.
- Your apartment is no longer just your home
Since the onset of COVID-19 and likely for the foreseeable future, you’ll be spending more time at home. Maybe you work remotely part-time, invite friends over more than going out to a bar or restaurant, or opt to work out at home instead of the gym or local studio. No matter how careful you are, all these instances bring more opportunities for human error, accident, and loss. Being prepared for the unexpected is the best way to help ensure you aren’t faced with financial burdens down the road.
- Essential Liability Coverage
This may be the most important, yet the most overlooked benefit of renters insurance. Most policies we write provide $500,000 of coverage to protect you in the event you are held personally liable for injury to another person, damage to property or your residence, or in a lawsuit.
Here are just a few examples of instances when this coverage will come in handy:
- Your dog bites a child on your property;
- A friend comes over and slips and falls, breaking a bone;
- A party you host gets out of control, causing damage to the rental property
- It’s Affordable
Currently, the average renters policy sold at Eastern Insurance with $500,000 liability coverage and $40,000 personal property coverage has an annual premium of only $250. If that sounds like a lot to you, let’s take a minute to break it down:
- Skip one trip to Starbucks per week ($5 latte x 52 weeks = $260)
- Go for a run instead of attending one soul cycle class per month ($32 for one class x 12 months = $384)
When you look at the cost of a renters insurance policy as protecting all your personal belongings and your financial future, it’s clear how much the benefits outweigh the costs.
To learn more about renters insurance, or to request a quote, visit Renters Insurance, Tenants Insurance | Eastern Insurance. Or, to start working directly with a member of the Eastern Insurance Customer Service Team, call us at 1-800-333-7234 and press Option 2, or email us at firstname.lastname@example.org.