Renter’s Insurance

Is Renters Insurance Necessary?

There are many reasons people choose to rent rather than buy a home. Whether you are a college student, you are saving up for a down payment on a house, or you simply like the flexibility of apartment living, it is a good idea to become familiar with renters insurance and how it can protect you. Statistics about Tenants in the United States

  • There are 108,969,722 renters in the United States
  • In 2014, in Wisconsin approximately 31.57% of all homes were renter-occupied.
  • In 2014, 37% of tenants in this country carry renters insurance.
  • The average renter owns $20,000 worth of personal belongings.
  • The average renters policy in Wisconsin is 133.00 per year.

What Is Renters Insurance?

Renters insurance provides low-cost insurance for your personal belongings, personal liability and loss of use. Renter Insurance will help you so you can recover from loss, damage or theft. Liability coverage will cover damage and injuries for situations that arise that are deemed your fault. For an example, you have a cooking fire. Your liability insurance would not only cover your landlords damage to the building, but your personal belongings and injuries to others. After a coverable event, loss of use would help pay for a hotel or another residence when you can’t stay in your home, while it is being repaired.

Your landlord’s policy covers the building and grounds, but will not reimburse you for the costs of your personal items in the event of a loss, or cover the costs of injuries or damage that happen inside your apartment space. Landlords insure their rental properties with homeowners or landlords insurance. These policies provide coverage for the structure of the building, any personal property the landlord owns (such as appliances if owned by the landlord and carpeting) and liability for injuries due to the property owner’s negligence in upkeep or safety of the property. But in the event that your personal belongings and valuables are destroyed in a building fire or stolen by a thief, you need to have a renter’s insurance policy in place to cover your losses. If you do not have such a policy, you will need to recover from your loss out of pocket.

Should I Get Renters Insurance?

Renters insurance is not mandatory in any state. Some landlords will require their tenants to buy renters insurance. Whether or not you are required to carry this insurance, choosing to purchase a renters insurance policy is a wise decision that will protect you from devastating loss.

What if I Don’t Own Anything Worth Insuring?

Many people who rent rooms in homes feel that renters insurance is an unnecessary expense. While you may not have a lot of expensive belongings, if you take the time to write down an inventory and an estimated value of everything you own, you may be surprised. You took a life time to accumulate all the stuff you currently have. Some of these items you received threw gifts, garage sales, store sales and out right purchasing. Remember when a major event happens and your stuff is destroyed or stolen, you won’t be able to wait for someone to give items to you, or that great deal at the store. It will take whatever the current price is at the store to replace your living room set, to clothes, and even down to your dishes in the cupboard.

Now look at your most valuable items. What if they were stolen? Could you afford to replace them? Statistically speaking, apartment residents report burglaries more frequently than people living in houses. Renters insurance allows you to be prepared so that you will not be faced with undue financial burdens in their wake.

What Does Renters Insurance Cover?

Renters insurance covers your personal belongings or “contents” against damage and loss, including from theft, fire, and even smoke, which can be quite destructive. Your contents insurance may provide actual-value reimbursement for your items, or, for a slightly higher premium, may cover your full replacement cost. If most of your possessions are older or worn, the more expensive policy is ideal as you will be able to purchase new items to replace everything you lost.

Your rental-home or apartment insurance will typically cover the cost of temporary housing if your home should be uninhabitable for a period of time following a disaster. It is important not to assume that your landlord will cover this cost for you, as that will depend upon the cause of the fire and the landlord’s specific coverage.

Finally, your policy will provide liability insurance should you be held responsible for an injury to a visitor in your home, your pet bite someone or you accidently start a fire. This coverage can be quite beneficial as medical bills can add up quickly. Even something as minor as a trip to the hospital for stitches can cost more than a full year of renters insurance coverage.

Is Renters Insurance Expensive?

In 2014, Wisconsin tenants spent an average of $133 per year for their renters insurance policies. At only $11 a month, this is not an unmanageable expense; most people spend more than that on pizza each month. If you are fortunate enough to never have to file a claim, the money will have still been well-spent for the peace of mind it can provide.