While renting a new place to live can be an exciting venture, thinking about renters insurance is probably the least exciting part of the experience. When you’re already trying to make your budget stretch to cover a litany of new expenses, it seems difficult to justify adding another one to your list. However, since your landlord’s insurance will not cover the loss of your personal assets in an event such as a fire or burglary, renters insurance is a necessity. Fortunately, renters insurance is easily one of the most affordable types of insurance coverage.
So how much is renters insurance? The answer to that question is determined by several different factors:
How much coverage you need
In order to properly answer this question, you must take inventory of all of your possessions and assess their value. In addition to the big ticket items, such as electronics, furniture, and valuables, be sure to include the cost to replace things such as kitchenware, textiles, and clothing. Remember that your reimbursement costs will only be as much as the amount of coverage you choose. Those little items around your home add up!
In addition to covering the loss of personal property, your coverage should also include liability. This will cover medical expenses, should someone be injured while on your rented property, as well as legal expenses, in the event of a lawsuit. While liability coverage will increase your premium, keep in mind that these types of expenses can be hundreds of thousands of dollars, and coverage is likely more affordable than you might think!
The type of coverage you choose
Just like the value of your car, the value of your belongings depreciates with age. Insurance companies will offer you a choice between actual value coverage and replacement cost coverage. Actual value coverage insures the depreciated value of your belongings (in other words, the original cost of the items). Replacement cost coverage, on the other hand, covers the current market value of your possessions. Of course, while replacement cost coverage will be more expensive, it can be invaluable when replacing lost or damaged property.
The amount of your deductible
Your deductible is the amount you pay out of your pocket before the coverage from your policy kicks in. Deductibles vary widely in range, with the average between $500 and $1,000. If you choose a plan with a low deductible, your month to month premium with be higher than it would with a higher deductible. On the other hand, if you have a high deductible, then when the time comes to replace your belongings, you may find that your deductible is higher than the cost of replacing your items.
When you take into account all of these factors, the next question you should ask yourself is ‘where do I get renters insurance?’ The best way to determine exactly how much coverage you need and what the cost to you will be is to talk to an experienced insurance agent. At Cronk and Wisniewski Insurance Agency, our agents can help you determine what type of coverage is right for you. We want to make sure you find a policy that covers all of your needs at a rate you can afford. Don’t let another day go by without protecting your castle.