I recently told you about a family in my community who lost everything in a fire. They were renting and did not have rental insurance. Thankfully, everyone was able to get out alive but they will still grieve their “stuff” and especially their precious photo memories.
If you are a renter, what can you do to protect yourself?
Having renter’s insurance either never occurred to them or they didn’t think they could afford it. When I rented, I never had renter’s insurance. It was something I thought of but never followed through with getting. We were lucky and never had anything major happen.
You may not think renter’s insurance is necessary since your landlord has insurance. Not the case. Your contents are not covered under the landlord’s policy. The landlord will be reimbursed for repairs but the items you lost which are not recoverable are not covered.
Then you may be think that your items aren’t worth that much anyway. Start adding up how much it would cost to completely start over – tvs, furniture, bedding, etc. It is boggling my mind to try to think what it would cost just to replace basic things such as towels, clothes, dishes, etc. Try State Farm’s “How much Insurance Do I Need” tool if you want to get a better estimate.
Renter’s insurance is a must for anyone who rents a house or an apartment. Renters insurance can protect your personal property against fire, theft and vandalism. Some renter’s insurance will also protect you in situations where a liability case is filed against you. For around $10-$25/month, you can get financial peace of mind in the event of a catastrophic event.
Think of it in these terms, can you afford $25/month or can you afford to replace all of your household items?
One last thought – check your smoke detectors and if you can’t afford smoke detectors, visit your local fire department. They usually have ones available to give away. Please keep your family safe.
Other Fire Safety Tools:
- FireSafety.gov (Information Resources)
- Fire Safety for Kids (lots of free activities here)
- Sparky the Fire Dog (lots of free activities for kids)
- More Fire Safety Tips
- Home Safety Council
Buying renters insurance was FREE! Yes by having 2 policies with one insurance company, the cost of our auto insurance went down $200 a year and the renters insurance was only $180.00 a year. So actually a money maker and with FREE insurance. Ask about it today…it really is a must.
The first year we rented our apartment, we didn’t have it because we thought it would be too expensive.
The pricing I was getting online was crazy and they asked really weird questions.
Then I was referred to Merritt Hall (a Nationwide/Allied company) because we had issues with American Family. I was able to get $40,000 worth of rental coverage plus our car insurance for about $10 more a month then what we were paying for just car insurance ($20,000 would have been the same price!) by making that change.
So if you are looking into rental insurance, go straight for a local agent and see if you can discounts for having multiple types of insurance with them.
I love having the piece of mind, that if something happens like a neighbor setting off fireworks and burns down the complex (that happen at a complex a couple of years ago in Indy) we will be able to recover.
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Briana,
Thanks for highlighting renter’s insurance and sharing a link from the State Farm website.
Insurance is a subject people don’t necessarily like to think about, but plays a crucial role in protecting yourself against unknown risks. As you point out, a renter’s insurance policy usually doesn’t cost very much. Furthermore, depending on your insurance provider, you might qualify for discounts from owning multiple policies under a single carrier. Discounts will vary depending on your provider, location, the number of policies owned, and several other factors.
To find out about your insurance options, we recommend speaking with your insurance agent, especially since everyone’s circumstances are unique. Your insurance agent should explain your options and help you decide what works best for your financial situation.
Before you chat with your insurance agent, think about the value of your belongings. Understanding the amount you wish to insure will help your agent provide better recommendations and more accurate insurance options. In addition, be sure to take photographs and/or keep an inventory of your belongings. Store your inventory in a secure location. An inventory will help you in the event you need to file a claim.
If you own a PC, feel free to download a copy of Possessions Matters, a home inventory program: http://www.statefarm.com/insurance/service_center/possessions_matters.asp
Thanks again!! ~ From State Farm Insurance
I was lucky that when I rented right out of college my parents made me get renters insurance. It only cost me around $10.00 a month because I didn’t have much. Looking back it was one of the best things my parents could make me do. I never had to use it, but I’m glad I had it.
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Thanks for this information. We rent and when I asked my landlord if we needed renters insurance he told me, “No.” Seeing these pictures and hearing that heartbreaking story of that family terrifies me. I am definitely going to look into that insurance!