What would you do if a pipe in your apartment burst and soaked all your electronics? What if a fire started in your kitchen? Fires, Floods and Earthquakes happen all the time. Home Owners insurance as the name implies covers the owner of a home against all sorts of possible disasters, everything from a tree falling on the roof to a visitor slipping on the stairs. But what if you’re just renting?
In a strange sort of twist of logic, renter’s insurance is actually a subset of home owner’s insurance. Since the renter doesn’t have any obligation to fix the roof or pay for the guest’s broken ankle, that would be covered by the landlord’s insurance. The renter’s only responsibility is to cover the value of his own personal belongings.
Renter’s Insurance-
If you rent your home or apartment, renter’s insurance is something you simply shouldn’t be without. In the unfortunate event that your personal belongings were to become damaged or stolen, renter’s insurance would pick up the tab by either reimbursing you for the current value or replacing them at full cost, depending on what type of policy you have.
If you’re wondering how much it would cost for you to obtain renter’s insurance, you should know that the price-tag on a policy is determined by several different factors. Here are a few things insurance companies look at that may affect the cost of your renter’s insurance.
Type of Rental
The cost of renter’s insurance will vary depending on what type of home you rent. More common types of rental units include houses, apartments, condos, and duplexes–and the age of the unit and the materials used to build it will most likely have some bearing on the cost of your renter’s insurance policy.
Rental Location
If you rent property in an area known for excessive criminal activity or a place that is frequently affected by natural disasters, the cost of your renter’s insurance policy will definitely be higher. If you are looking for a place to rent, try to avoid areas that insurance companies deem “high risk” in order to help keep the cost down.
Personal Property Value
Something else that will be considered into the cost of renter’s insurance is the value of your personal property. The more you own that’s of significant value, the more you should expect to pay for coverage
Liability Coverage
A renter’s insurance policy doesn’t have to include liability coverage, but if you have a high-risk pet or you entertain a large number of guests it’s something you should seriously consider. Adding liability will increase the cost of your renter’s insurance, but it could save you a lot of money down the road should you be held liable for an injury sustained on your property due to neglgence on your part (that was not under your landlord’s control). For instance, if you had a wild party and left lots of empty bottles at the top of the stairs and one of the guests slipped on them and fell down the stairs. You might be held liable for negligence.
Safety Measures
You might be able to save a little bit of money on your renter’s insurance policy by going the extra mile to make sure your rented home is more safe and secure. Smoke detectors, fire extinguishers, dead-bolted exterior doors, and an alarm system are just some of the things you can install that insurance companies will look upon favorably.
Deductible
The higher the deductible you choose when you purchase renter’s insurance, the lower your premiums will be. Just be sure that if you choose a higher deductible, you have some money set aside in savings to cover it if you ever need to file a claim.
Bundling
You can get renter’s insurance for less by purchasing all of your policies from one insurance company. Renter’s, automobile, life, and health are some of the types of insurance you may carry–and all of these policies bundled together usually equal a fairly large savings.
The annual cost of renter’s insurance with all of the above factors considered typically ranges anywhere from $100 to $500, but can be more or less depending on what your insurance needs are.
See Also:
Term vs. Whole Life Insurance – What Should You Choose?
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