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Downsizing To An Apartment?
Yahoo! The kids have (finally?) left the nest. Or, maybe it’s time to ditch painting the trim and cutting the lawn for a more simple, maintenance-free lifestyle. Whatever the reason, more and more mature adults have decided to make the switch from homeowners to renters. In fact, the U.S. Census Bureau reports that almost one-third of adult Americans rent. So in the thrill of finding a place with a pool and a clubhouse, don’t forget to protect yourself in the event your property or possessions are damaged or stolen. It’s time to talk about renters insurance.
A survey by the Insurance Information Institute found that fewer than three out of 10 renters purchase renters insurance. Here’s the straight talk on some of the most common myths and misconceptions about renters insurance:
Myth: It’s too expensive.
Baloney! According to MSN Money, coverage is inexpensive—generally between $100 and $300 a year, depending on where you live and what you’re insuring. That’s a day or two of food and lodging expenses you’ll incur if you can’t live in your apartment due to damage from a fire or vandalism. While the market might be unpredictable, renters insurance is clearly a smart economic move.
Myth: I don’t have that much to insure.
Guess again! You probably have more than you realize. Use this calculator to get a rough idea of the value of what you own. Most people are surprised by how much stuff they’ve accumulated over the years. Please keep in mind that there may be limits for personal property coverage, such as $1,000 for any item of jewelry. Therefore, you may need to get additional insurance for particularly valuable items.
Myth: My landlord’s insurance will cover my belongings.
Don’t count on it! This insurance generally only covers the building’s structure—not your possessions. You just can’t count on someone else to take care of your protection and security.
Myth: Renters insurance only covers replacement of my possessions.
Not quite! If your residence is too damaged to live in, your renters insurance policy may include additional living expenses, which may include payments for the cost of a hotel, food and other expenses. You also can get family liability coverage, which can help protect you from financial loss if you’re legally obligated to pay for medical expenses if someone is injured in an accident in your residence, or for damage to another person’s property.
Myth: Renters insurance only covers property that’s in my apartment.
Wrong again! For example, if your laptop or iPad were stolen from your car, your auto insurance wouldn’t cover the loss. But, you could get reimbursed by renters insurance, depending on your coverage.
Before you buy, it’s also extremely important to know what renters insurance does not cover. Physical damage to structures is typically not included in your policy, so check with your landlord to make sure the building has appropriate coverage. Floods, earthquakes and water (sewer) backups are excluded from many renters insurance policies.
Sometimes, life is unpredictable. When it is, you’ll be glad you have renters insurance to protect your possessions—and your bank account.
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George Palatine is part of the eBusiness team at Allstate and is a recognized expert in social marketing, SEO, online informatics and the power of content to engage, inform and entertain customers and business partners.
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I know a lot of people who did not bother to get renters insurance, and were very sorry later. These people were victims of theft, fires, storms, etc. Your personal belongings, and the ability to get help with relocation assistance, could have saved some people i know a lot of problems. Thanks for publishing this! Renters insurance is usually pretty cheap for the protection it gives you when you need it.
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