Moving in is an exciting time! You finally have a space of your own and with it new freedom and responsibilities.
But there’s a lot to think about during this time. You have to consider your budget, which belongings will come with you to your new place, and what you’ll need to buy for your new apartment. One thing you should not forget to purchase is insurance!
95% of homeowners purchase homeowner’s insurance, whereas only 41% of renters have renter’s insurance (Investopedia). This is often because many people wrongly assume that they are covered under their landlord’s policy. While the building may be covered, when it comes to your possessions and your liability, you are on your own. Shopping for insurance can be intimidating, but renters insurance is relatively simple and generally extremely affordable.
What do I need to think about before purchasing a Renter’s Insurance Policy?
A first step when looking for renters insurance is to take inventory. People tend to under or over value their possessions. It’s important you find the right coverage for you. Renters insurance can cover the cost of replacing your things if the unexpected happens such as a break in when you are traveling or a fire that destroys all your possessions.
Another thing to consider when looking at different policies is what is covered and what is excluded in a policy. Flooding or tornadoes may not be covered but if this is a concern in your area it is important to talk to an agent and discuss adding coverage for these events. Also, think about the cost of certain items. Most standard policies only cover jewelry worth under $1,500. If that family heirloom you got for graduation or your new engagement ring are valued at more than $1,500, you may need additional coverage in the form or a rider on your renter’s policy. On the bright side, these are also pretty inexpensive to obtain!
What else does Renter’s Insurance cover?
Possessions are important but so is your liability. Say a DoorDash driver comes to your unit. Your dog runs barking excitedly towards the driver. Fido means no harm, but the driver panics and backs up quickly, falling and hitting his head on the wall behind him. He then sues you for loss of income while he recovers from his concussion. Or say you were cooking and spilled some water on the floor. Before you have a chance to clean it up, your friend comes in to get a drink and slips and falls, breaking her arm. You are now responsible for her medical costs. Without renters insurance you could be swimming in legal fees from simple situations like these. Renters insurance can help you with the costs.
The bottom line is, as always, life is unpredictable. Life throws you curveballs, which can feel even more difficult to handle when living on your own for the first time.
American Heritage understands the different types of coverage offered by a wide range of insurance companies and will do the shopping for you. Talk to an agent today to find the right insurance for you and your new place.
Article By: Mia Tramontana