Renting a home or apartment can be extremely overwhelming and confusing for anyone.  A lot of tenants worry about what would happen should there ever be a loss in their building or home.  Many believe that their landlord’s policy would cover them, and in a sense it would, but only in terms of the dwelling.  Your landlord’s policy will cover the entire home, but it won’t cover any of your personal property inside the unit.  Getting renter’s insurance can provide tenants will some serious peace of mind.  Not only will their personal property be protected (as long as the loss is covered), but they will also be protected if they are responsible for bodily injury or property damage to others.  Who wouldn’t want that weight off of their shoulders?  Especially since renter’s insurance is relatively inexpensive (roughly a couple of hundred per month), and even less if you split the cost with a roommate.

So what exactly would be covered under renter’s insurance?  It varies from company to company but all renter’s insurance policies provide “named peril” coverage which means that your policy will specifically tell you what you are covered for.  If your personal property is stolen, damaged, or destroyed by certain types of “peril” including fire, lightning, windstorm, hail, explosions, smoke, vandalism, theft, electrical surge damage, water-related damage from home utilities, and even more, a renter’s insurance policy would likely cover you and repair or replace said property.  Many people believe that flood insurance is also included in renter’s insurance, however it is not.  You can add flood coverage to your policy for a reasonable price through most insurance companies.  Be sure to read through your insurance contract for explanations and exclusions regarding specific types of coverage.

Another suggestion would be to make sure you are covered for replacement cost content.  Replacement cost content does cost a bit more, but is definitely worth it in the long run.  This coverage ensures that if your property is damaged, you will be reimbursed for the actual cost that you originally paid for the item, whereas if you do not pay the extra for replacement cost content and your property is damaged, you will only be paid for what your property was worth at the time it was damaged or stolen.  For example if your computer originally cost $1000 but has depreciated in value over the past few years, you will not be reimbursed the $1000 that you originally paid for it unless you have replacement cost coverage.

In the long run, renter’s insurance is extremely affordable and will ensure that thousands of dollars worth of property are insured and will cover medical costs (up to a certain amount) should a guest get injured in your home.  How much would it cost to replace your computer, TV, any other electronics, clothes, furniture, cooking supplies, books, etc should your apartment burn down?  At least a few thousand dollars and who can afford that?  Not only will renter’s insurance repair/replace your property, many times it will also cover the cost of meals and a hotel should you be displaced from your home.

There are many potential threats to personal property, but renter’s insurance is the best defense and will ensure that you don’t have to replace your posessions from scratch should a disaster occur.  To get the best deal, bundle your renter’s and auto insurance together!  Most companies offer a multi-policy discount and that way you will get the most bang for your buck.  If you’re renting your own home or apartment and are looking for insurance in Massachusetts, contact MassDrive today for a quote!

Photo By: stevendamron