The great thing about renting is that you usually do not have to deal with improvements in the home, major repairs or cut the yard. But that does not mean that the rent is completely worrying.
There is always a risk of fire, water damage, burglary or any other disaster that can make your life up and down. Imagine if all your belongings were destroyed or stolen and you have to start from scratch with a new laptop, TV, clothes and all the other things you trust in your daily life.
If you did not rent insurance, you would find yourself in a deep financial hole.
Unfortunately, many tenants are at risk because they do not bother to insure insurance until it is too late. And while your landlord is likely to have an insurance policy, this policy usually does not cover the building alone and not your personal items.
Thankfully, it's tenants insurance – and the price is usually reasonable. ( Learn more about tenants insurance from ERIE and request a free quote.)
According to National Association of Insurance Commissioners, average policies cost only $ 184 per year. It goes to just over $ 15 a month for liability insurance ranging from $ 30,000 to $ 50,000 (depending on location), with deductible between $ 500 and $ 1,000.
There are many variables. Therefore, helping a professional as a local Erie Insurance agent helps you customize your coverage and understand how it works.
Here are some other important things to know about what goes into the cost of your tenant insurance.
CONNECT THE VALUES OF YOUR LOCATIONS
Furniture, clothes, barrels, books …. the things you own tend to pile up over time. The reality is that most tenants underestimate the value of their personal belongings. Start by making an inventory of what you own and how much it is worth.
See also: Why do you need a home inventory (and tips to get started)
Once you have entered your things, realize that there is quite a big difference from what you originally thought it was all worth it.
DECISION BETWEEN CURRENT CASH VALUE AND REVENUE COSTS
Actual cash flow refers to depreciation when calculating what your assets are worth. For example, if you bought a new laptop five years ago for $ 1,000, you would only be reimbursed for the laptop's value in today's dollar minus depreciation. So if it's just worth $ 500 today, that's what you get.
Replacement cost is the better way to go. It replaces you for the original value of the product (or one of a similar kind and quality at today's replacement cost if the product is no longer available) and the price for better coverage is often only slightly higher than the actual cash value.
The higher the deductible, the less you pay for coverage and vice versa. You have to ask yourself how much you could afford to pay out of your pocket if you were to suffer a loss – or how much of an extra saving you would like to have from choosing a higher deductible. Answering these questions will make it easier to choose which deductible is appropriate for your situation.
If your apartment had a devastating fire, would you have a backup plan for where to live? Most tenants insurance will give you the cost of living, which can pay for hotel stays, temporary rentals, meals and other expenses you may incur if you could not return to your apartment due to a covered loss. It is important that you review your policy or talk to your agent to make sure you know the limits of this coverage.
This protects you if you injure or damage your guests or property. It can also cover medical payments within certain limits (except for insured or tenants in the household) because someone is injured in an accident while visiting your home.
CHOOSE A DUTY LIMIT
There are many ways that you can terminate responsibility for, unfortunately, harming someone. One of the more obvious examples seems to be in the news a lot: A dog bites someone, and the dog owner is responsible. Such a trial can be expensive if the injured suffers from long-term physical scars or deterioration.
If you are concerned that you do not have sufficient liability insurance, it may be a good idea to add an umbrella policy that offers an additional $ 1 million to $ 5 million in coverage. ]
PROTECTION FROM HOME
Many people do not realize this, but your policy covers your responsibility and personal property everywhere you go. Often it can be anywhere in the world – as if all your gear (including your new laptop!) Is stolen on the epic backpacking trip. So check your policy to see if you are covered, at home and on the road.
You may not think of an earthquake or other natural disaster, but they can and will happen. Depending on where you live, an ERIE agent can tell you more about how to add these covers to your tenant policy.
Keep in mind extra protection for values
Most insurance policies limit the amount of coverage and conditions of coverage for valuable items such as jewelry, art, bicycles or musical instruments.
Related: Do I need to insure my engagement ring?
If you own expensive or difficult to replace things like these, you probably want to add an approval to your tenant policy to get them the best coverage you can. Read more about personal value insurance.
SAVE ANY MONEY
If you buy both a tenant policy and a car policy, you can qualify for a multi-policy discount. Better than, in some cases, the rebate on your car insurance policy actually pays for some or all of the tenants. It would be a win-win – for your peace of mind and your bank account. Read more about car insurance from ERIE (and request a free quote).
Without a doubt, renting can be an affordable and hassle-free alternative to buying and keeping a home. However, you should still make sure you have the protection you need with good tenants insurance. Better to be safe than sorry.