Renter's insurance isn't always top-of-mind for everyone. Either they assume their landlord will take care of them if there's a loss, or they think the chance of a disaster happening to them is unlikely.
Why Do I Need Renter's Insurance?
Unfortunately, neither of those assumptions hold true; your landlord is only responsible for the structure of the building, not your personal property. It's easy to think it won't happen to you, but simply turn on the news and you will see that home damage happens more often than you'd think.
Not all places require renter's insurance but it's very important to have, whether you rent an apartment, condo, or house. Renter's insurance covers your personal property in the event of a loss, and the monthly fee is relatively inexpensive for the amount of stress and money it will save you in the event of an emergency.
When Is Renter's Insurance Helpful?
Renter's insurance is used to cover your personal property in the event of a loss.
What's your personal property?
Think of it this way: if you took your home, cut the top off, and turned it upside down, anything that would fall out is your personal property.
This includes everything from your toothbrush to your TV. Your kitchenware, clothes, bedding, shoes, electronics, and even your children's toys are your personal property. If your home experiences covered damage, renter's insurance helps to ensure you won't have to pay for everything directly out of your own pocket.
If you live in an apartment and someone below you leaves a candle unattended, resulting in a fire, and your belongings become damaged by smoke and fire, renter's insurance can help you replace those items.
Or, if a plumbing issue creates water damage in the unit above you, causing a leak that damages your belongings, you'll need renter's insurance to replace those items. Your landlord is only responsible for fixing the structural damage, not replacing your personal property.
How Much Coverage Do I Need?
That will depend on the value of your belongings, your budget, and how comfortable you would feel replacing any damaged items out of your own funds. The average adult in a one-bedroom apartment will have at least $30,000 worth of personal property within their home.
Everyone is Unique
Your coverage and your monthly investment will be unique to you, so it's important to have a conversation with your insurance agent about your needs and allow them to help you decide what carrier is right for you. Many people are able to invest in coverage they are comfortable with for $25-75 per month, which typically includes coverage amounts from $10,000 on up.
Additionally, you may want to consider opting for Replacement Cost on your personal property. If you have a wardrobe full of professional workwear, you'll probably want to replace damaged items with items of comparable value—not the cheapest option you can find, which is where Replacement Cost comes in handy.
At the end of the day, nobody expects a disaster to happen in or near their home. However, it could be relatively expensive to buy a new set of everything that you've collected over the years all at once, if that does happen. Renter's insurance can help you guard against that possibility without overhauling the rest of your budget. Reach out to Thrive to find out what insurance best fits your needs.
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