You found a great apartment to rent. Now, you have to create a list of things to do before you move into your new home. So… Here’s what you should know about renters’ insurance.
List Of Things To Do Before You Move Into Your New Home
Reserve A Moving Truck And Supplies
Recruit three friends to help on moving day, one of which won’t show up.
Purchase renters’ insurance.
Whether your landlord requires it or not, buying renters insurance protects you against Murphy’s Law: What can go wrong will go wrong. Consider renters’ insurance like a get out of jail free card. If you lose something of value to theft or a natural disaster, you receive compensation for your financial losses.
If someone breaks into your apartment and liberates your stereo, your landlord is not on the legal hook for replacing the stolen electronics. Renters insurance is how you replace something of value.
According to the property management experts at Utopia Management, what you should know about renters insurance can help you buy the right policy.
One of the biggest misconceptions concerning renters insurance is that buying a policy can be a budget buster. With the average cost of renters insurance between $12 and $15 a month, paying for a policy costs much less than if you purchased a homeowners insurance policy. Think about this: Is paying $15 per month to insure expensive items such as jewelry and electronics worth it?
The answer is a resounding yes.
When you buy a car, you do not sign a contract for the first motor vehicle that you see. Instead, you spend time comparison shopping to find the best deal. The same principle applies to renters insurance. Shopping for a policy online might save you money on the same policy you buy in person. Our independent insurance agents will do the shopping for you.
The key is to buy a policy that fits within your monthly budget while covering the cash value of personal items you might one day need to replace.
Not Just Coverage For Your Home
Anything you keep locked in your car or take with you on vacation receives coverage under most renters’ insurance policies. Whether a thief steals your bike located inside your apartment or locked outside your favorite restaurant, renters insurance provides you with the cash value of the stolen item.
If your unit suffered major damage because of a fire or storm, a comprehensive renters insurance policy could include a clause that pays for temporary housing. This includes if a fire damaged another unit and your landlord had to turn off utilities for repair work to start.
Personal Injury Coverage
What happens if one of your friends gets hurt while at your apartment? Without renters insurance, you can be held legally liable for the injuries suffered by your friend. The liability section of a renters insurance policy should include coverage for personal injury liability.
Even If You Caused The Damage
Let’s say you fell asleep with the bathwater running. You wake up an hour later to an apartment that resembled an exhibit at SeaWorld. A renters insurance policy typically does not play the blame game when it comes to coverage. If your landlord files a lawsuit that exceeds the amount of your security deposit, your renters’ insurance policy kicks in to save the day.
Protects Other People’s Stuff
Look at renters insurance as a good friend that tags along with you everywhere you go. If you knocked over a fragile vase or fell into a coveted work of art at a friend’s home, your renters’ insurance policy might cover the damage you caused even if you did not cause the damage at your apartment.
Where You Live Matters
Insurance companies take a long, hard look at where potential policyholders live before calculating the cost of a policy. If you live in a high-crime area, you can expect to pay more for renters insurance. You can mitigate this risk factor by installing a comprehensive home security system.
Your Landlord Is Responsible For Structural Damage
Landlords assume financial responsibility for paying for the repairs needed for structural damage. From the impact of a destructive storm to the devastation left behind by a fire, your landlord cannot ask you for any financial support to pay for structural repairs. Landlords also need insurance, to cover such scenarios.
How Much Coverage Do I Need?
You want to buy renters insurance to provide coverage that is close to or greater than the value of your possessions. Although cutting a financial corner or two saves you money on monthly premiums, cutting corners on an expensive flat-screen television costs you more in the long run if a thief steals your pricey TV.
What About Liability Coverage?
The standard model for a renters insurance policy contains a clause setting personal liability coverage at $100,000. If you are concerned about potentially facing a high-value lawsuit, you should consider increasing the amount of coverage provided by liability.
The Bottom Line
Peace of mind. Whether you buy life insurance coverage or purchase a policy to cover personal property, insurance represents the ultimate peace of mind.
With the average renters’ insurance policy of $187, protecting your valuable assets, as well as the assets of your neighbors, represents an affordable way to recover the financial losses caused by theft and property damage.
Renters Insurance FAQs
What Is The Average Cost Of Renters Insurance In St Louis?
In St. Louis renters insurance averages $25 a month or $302 a year.
Can A Landlord Require Renters Insurance In Missouri?
Is renters insurance required in Missouri? No, there is no federal law that requires tenants to carry renters insurance; however, some landlords may require proof of renters insurance as part of the lease agreement.
How Can I Get Renters Insurance?
1. Figure out what is and isn't covered by your landlord's insurance policy. Your landlord is required by law to have a certain amount of insurance on the building. 2. Do your research. 3. Compare insurance companies. 4. Estimate the value of your personal property. 5. Get a renters insurance quote.
How Much Should I Be Paying For Renters Insurance?
The average renters insurance cost in the U.S. is $168 per year, or about $14 per month, according to NerdWallet's latest rate analysis. This estimate is based on a policy for a hypothetical 30-year-old tenant with $30,000 in personal property coverage, $100,000 in liability coverage and a $500 deductible.
What Is The Point Of Renters Insurance?
Renters insurance protects your personal property in a rented apartment, condo or home from unexpected circumstances such as theft, a fire or sewer backup damage – and will pay you for lost or damaged possessions. It can also help protect you from liability if someone is injured on your property.