Your top 4 renters insurance questions answered

When you are looking at apartments or townhouses, you are thinking about what the rent is, how much the utilities will cost, and what you will need for a down payment. Renters insurance is often forgotten about, but it is extremely important and necessary. That is why we have broken down the renters insurance basics and answered your top 4 questions.

Why do I need renters insurance?

Unfortunately, disasters happen.  If a pipe bursts, your apartment gets broken into, or a fire occurs, it is important that you have insurance to protect what you own. Insurance can end up saving you huge! If you don’t have renters insurance, you could be at risk of losing thousands of dollars. Many may think that they don’t need renters insurance or that the management company will assume responsibility. However, only the building itself is covered by the landlord. Your personal property is not included, and that is why some companies, such as Prairie Property Management, will require you to have renters insurance as a part of the lease agreement.

What does it cover?

Renters insurance covers your personal belongings as well as your liability in the event that someone is injured on the property. There a couple of different coverage methods insurance companies will use. They will either cover the cash value of your belongings (what they would be sold for today) or they will cover to completely replace the item. Often times policies that will completely replace an item are a higher cost since the pay out is higher.

As with any type of insurance, there is a deductible. Which means that you are responsible for the cost up to a certain amount. Say your deductible is $1,000, then you’d be responsible for everything up to $1,000 in damage. Depending on what plan you pick, there are limits to what insurance can cover and some items are excluded from coverage, such as jewelry.

The coverage may also cover additional expenses, such as if something happens at your apartment and you need to stay in a hotel for a couple of nights, it will be covered by insurance.

What does it cost?

Unlike homeowner’s insurance, renters insurance is very reasonably priced, with an average cost of around $16 per month according to PolicyGenius. The total cost per month is primarily based on how much your possessions are worth and what sort of deductible you want. Other factors include: if you are a dog owner, what security systems are in place, and your location.

Where can I purchase renters insurance?

There are a lot of companies that sell renters insurance and a good starting point would be checking to see if your car insurance company also offers renters insurance. Otherwise, a quick Google search will pull up several companies that will give you quotes online without ever having to talk to an agent, unless you want to. When you are looking for a provider, shop around a bit and get multiple quotes. That way you will be sure you are getting the exact coverage you need at the best price. The whole process could take you as little as 10 to 15 minutes but could end up saving you thousands.

Conclusion: Purchasing renters insurance is quick, easy, and totally worth it.