Renting a home or apartment means you are borrowing someone else’s space. Another person owns your dwelling, therefore another person must have insurance for this dwelling. At least, this is what most of us assume. While it is true landlords are responsible for things such as land taxes and insurance on the building, they are not responsible for insurance on a renter’s personal belongings. Surprisingly, landlords are also not responsible for a tenant’s guest who may slip on a wet floor and break their arm. By law, the tenant is responsible. Therefore, when renting an apartment, the number of bedrooms and the included amenities are not all that need to be considered. Renter’s insurance should be taken into account in the monthly budget.
Pleasantly inexpensive, renter’s insurance premiums vary from agent to agent, so the amount of insurance needed should be considered carefully and negotiated thoroughly. First, the value of the possessions in the dwelling should be determined. Is there an extensive compact disc collection in the apartment? Maybe there are heirlooms which have monetary worth, or possibly a high end television. Even if there are few items worth monetary value, renter’s insurance will assist a renter with the cost of “bouncing back” after a tragedy with things such as temporary housing and take-out meals. The amount of visitors should be taken into account as well, as the renter is responsible for these individuals. If the apartment will harbor many visitors, the renter needs to consider the possibility of harm to a guest. These items should be taken into consideration when determining the amount of renter’s insurance a dweller will need.
Once the possessions, cost of recovering from tragedy, and guest estimation is taken, the insurance companies should begin receiving phone calls. The aforementioned points should be itemized so the savvy insurance shopper has a ballpark figure with which to bargain. Remember, an insurance policy renews at least once a year, so if needs change, insurance may be altered as well. Also, most insurance companies are happy to assist customers with changes between renewals.
Every renewal, the insurance policy should be reviewed to ensure the granted amount still covers the needs of the insured parties. While a renter does not have to itemize every renewal term, the smart renter pays attention to life changes and carefully assesses the amount of insurance needed compared to the amount of insurance received.
Most renters do not assess their need for insurance, in fact 75% of renters do not own insurance for their dwelling. Owning renter’s insurance is cheap, easy to acquire, often can be combined with other insurance policies, and offers peace of mind for every renter. Knowing the facts behind renter’s insurance, and understanding how to assess the amount of insurance needed, is an asset no renter can afford to overlook.