Top five renter’s insurance mistakes
While more and more apartment communities are asking residents to take out renters insurance policies, a high percentage of apartment dwellers still lack vital protection against unforeseen events. In many cases renters forego insurance policies due to lack of information or even worse, misconception. Here are the top five mistakes regarding renters insurance:
- I don’t need renter’s insurance, my landlord’s policy has me covered. This is probably the most common misconception about renters insurance. While apartment owners do have insurance on their properties, these policies only cover the structure itself, and not your belongings. Your landlord’s policy also leaves you liable for accidental damage to the property by you or your guests or in case of a guests’ injury.
- It’s very expensive. A recent survey for insuranceQuotes.com found that 29 percent of Millennials estimated the annual cost of renters insurance at $1,000. However, renter’s insurance is quite inexpensive, clocking in below $300 per year usually. It depends on your policy provider, your policy’s features and range of coverage, any extra coverage options you might add, the value of your possessions and the presence or lack thereof of certain safety measures, such as fire alarms. With Resident Shield, you can enjoy coverage for as little as 50 cents per day. Now that’s a bargain deal!
- Not doing enough research. While any insurance is better than none, not all policies are created equal. Inexpensive as renters insurance might be, spending extra time to do adequate research can save you big bucks down the life, and quite possibly even from financial ruin. For example some policies feature cash value reimbursement, while others offer replacement cost coverage. The latter usually charges somewhat higher premiums, but it’s definitely worth the extra bucks, since the former will pay you the actual cash value of your possession – say the amount you’d be able to get would you sell your items as they are. Policies with replacement cost reimbursement, such as Resident Shield, insure full replacement value for your personal property (and that of your neighbors’).
- Not coordinating your policy with your apartment community. Some apartment complexes not only require you to have renters insurance, but they also have a set minimum level of coverage. Always inquire what the insurance requirements are before you move to a new community and, if needed, make the necessary additions to your policy.
- Not knowing your policy’s pet provisions. Knowing in full detail what the pet features and provisions are o your policy are important to all pet owners. An expansive pet provision or extra feature on your insurance policy increases the likelihood of you and your furry friend being excepted into a community. Moreover some communities may make pet coverage a requirement, especially if you own a breed that is deemed dangerous. Do your research both at a potential new community as well as when getting renters insurance. The Resident Shield Renters Insurance Plan includes a liability provision in case of dog bites and Pet Damage Coverage, which offers you $500 in liability coverage in the event of Pet Damage to the apartment.