Many myths and preconceptions surround the topic of renter’s insurance. As a result, many renters delay getting coverage that is critical for insuring their home and belongings. Around 36% of Americans rent their homes, but more than half don’t have renter’s insurance. In the tragic event of a natural disaster, fire, burglary, or other misfortune, renter’s insurance can relieve the burden of replacing or repairing the property. The following are the most common misconceptions about renter’s insurance and tips to help protect your possessions.

 

Myth 1: I Don’t Need Renter’s Insurance

 

Renters might falsely assume that a landlord’s insurance covers their belongings as well. However, the landlord’s insurance typically only covers structural damage to the building. If your property inside the building is lost, damaged, or stolen, you’ll have to pay for replacements out-of-pocket.

 

Many landlords now require tenants to purchase renter’s insurance before moving in. However, even if renter’s insurance isn’t a requirement, it’s essential for safeguarding yourself from unforeseen circumstances. For example, if another tenant in your apartment complex causes a fire that damages the contents of your unit, renter’s insurance can help you pick up your everyday life with minimal hassle.

 

Renter’s insurance offers multi-faceted coverage, including liability coverage when you damage someone else’s property (i.e., your children accidentally throw a baseball through the neighbor’s window). If your rental property becomes unlivable, renter’s insurance can pay for temporary accommodation. Find out more about the advantages of having renter’s insurance.

 

Myth 2: It’s Too Expensive

 

Many renters may think that renter’s insurance is just as expensive as homeowner’s insurance and they, therefore, won’t be able to afford it. After all, it’s an additional expense for a what-if situation that may never happen. However, renter’s insurance is more affordable than most people think. For a few hundred dollars per year, policyholders can insure their possessions in case of a disaster.

 

One reason renter’s insurance is more affordable than homeowner’s insurance is that you are only insuring your belongings, instead of the building itself. Landlord’s insurance covers the structure. As a result, renters only pay a fraction of the cost that homeowners have to pay.

 

An ideal way to lower the cost of renter’s insurance even further is by combining your auto and renter’s insurance policies. Your local insurance representative will tell you how you can get discounts on coverage.

 

Myth 3: My Belongings Aren’t Worth Insuring

 

At first glance, you might think you don’t have very many possessions. However, electronics, clothing, and small items can add up. Think about your laptop, computer, stereo, TV, jewelry, instruments, and other things that could be very costly, should you have to replace them all at once. Most renters typically have at least a few thousand dollars worth of belongings. Additionally, renter’s insurance offers some protection for your belongings while you are traveling. For example, a stolen suitcase, lost luggage, forgotten golf clubs, and other items can be replaced through renter’s insurance.

 

If you share a home with roommates, it can be more affordable to get a combined policy. Find out more about roommates and renter’s insurance.

 

Myth 4: I Only Need Insurance in Areas with Severe Weather

 

Generally, separate insurance policies are necessary to cover damage from floods or earthquakes. However, renter’s insurance covers a broad range of potential disasters, both common and unusual. For example, renter’s insurance covers common perils such as damage from fire, lightning, theft, windstorm, hail, smoke, ice, electrical surge, and water. Renter’s insurance also covers damage from volcanic eruptions, falling objects, vehicles, riots, explosions, aircraft, and glass.

 

Even for renters who are not worried about any of the above events, there is one disaster that can strike anyone. Burglary is a leading cause of claims, costing victims an annual 4 and a half million dollars in losses. Renter’s insurance can replace your lost or damaged property, allowing you to get back on your feet as quickly as possible.

 

Myth 5: It’s Difficult to Find Coverage

 

Protective Agency makes renter’s insurance affordable and straightforward. Our agents can help you match what type of coverage for your needs and find the most affordable option. We’re experienced at matching individuals with appropriate policies and helping them understand and feel comfortable with their coverage.

 

Policies can cover the replacement cost value (RCV) or the actual cash value (ACV) of property. RCV coverage will pay for a new item at the current market price. The ACV, on the other hand, will only cover the depreciated value of items.

 

To learn more about Renter’s Insurance, contact our experienced agents at Protective Agency  Or call (877) 739-9367. Our qualified insurance agents will be pleased to answer any questions you have.