Think renter’s insurance is just for your stuff? Too often, we have clients that think that they don’t own enough personal property to justify getting renters insurance, or that it isn’t valuable enough to insure. Or they believe that they aren’t at risk for a disaster. Renter’s insurance provides benefits for more than just replacing damaged or stolen items. It can also provide you with additional coverage you didn’t know about.
Many people may not think that they own enough to cover against damage, but they may not realize just how much it would cost to replace everything they own. Even if you have the bare minimum furniture and clothing, take a minute to add up what it cost you to buy those things or what it would cost you to replace them—even at a used price. Go room to room and document everything you own, from pots and plates in the kitchen to your couch and tv in the living room to your bed, dresser, and clothes (including socks and undergarments). You should also include any art, décor, books, and picture frames you have as well. The list is probably longer than you thought, which is why renter’s insurance is so important. Replacing even a fraction of your stuff is more of a financial ordeal than you may have considered.
Should a disaster ever strike, whether it be a hurricane, fire, or flooding, if it forces you out of your home until repairs are complete, then loss of use coverage can help you. Loss of use coverage can help cover expenses for you to stay in a temporary location and other related expenses until you return home. Sometimes staying in a hotel, even ones with extended-stay rates, can cost you more than you pay in rent.
You may only invite family and friends over, but should an injury occur, you may be liable for their injuries. If their insurance refuses coverage or limits coverage for their injuries because the injury occurred on someone else’s property, your friend or family member may come looking to you to help provide financial support to cover the bills.
Insurance is always better to have and not need than to need it and not have it. You always hope for the best and that you don’t need to make a claim, but if something should ever happen, at least you can be rest assured you have protection.