The Importance of Renters insurance
When living in an apartment, I had no idea that it was in my best interest to have renters’ insurance. Don’t get me wrong, it was a necessity to live in the complex, but I did not understand its importance.
When entering the insurance industry, I saw more renters’ policies than homeowners. What many people say is “I don’t have that much; I won’t need this ever.” These are major misconceptions. Rental insurance is one of the cheapest insurances you can have, and in the event of a major loss, it gives you the opportunity to replace everything.
I have a very recent example; my friend got an apartment for the first time. It was beautiful, new building, everything had been updated. Her and her partner moved everything that they owned into the apartment. Two weeks later, the pipe in the empty apartment 2 stories above it burst and flooded the place. The problem was, that since it was empty, the water kept on flowing. My friend’s place, even two stories down, got leaks everywhere. It flooded her ceiling and soaked everything she owned. Photos, food, furniture, even her cat’s litter box. Everything began to mold, and the apartment was essentially condemned. Now, my friend did not have renters’ insurance because the building did not require it. Unfortunately, my friend was left with nothing but a suitcase of clothes and some forks that did not rust.
Now here is the situation if she had insurance: She would put in a claim, and she would have personal property coverage for the amount she listed on the policy. She would also have loss of use coverage, which would cover her if she had to stay in a hotel or find somewhere else to rent while her apartment was being fixed. If a total loss occurs, you want to have the coverage because it gives you the ability to start over. It may not be able to replace the sentimental things you lost, but it will try and make you whole again. If you have an apartment, it is always in your best interest to have renters’ insurance. Even if the landlord or building does not require it! Inquire with an agent or take a peek at your current coverages to make sure they’ll cover your needs in the event of a claim.
