Renter's Insurance: How Much Is My Stuff Worth?

If you're out there shopping for a Greensboro Renters Insurance policy, you're to be commended. You're in the minority in an area where making the right decision can have a huge financial impact on your life.

Homeowner's vs. Renter's Insurance

According to the Insurance Information Institute (III), approximately 97% of homeowners in the U.S. carry homeowner's insurance while less than 40% of renters carry renter's insurance. There may be several reasons that so many renters remain without coverage:

1. Some may feel that the personal property they have doesn't have a high enough value to warrant insuring it.
2. Some may feel the cost of renter's insurance is too high to justify this ongoing expense.
3. Some may not realize the benefits that come with a renter's insurance policy.

Is It Worth It?

Bringing clarity to the three above-listed concerns may be just what you need to justify your taking out Greensboro Renters Insurance coverage.

As far as total value of your possessions goes, you likely have much more in value than you think. Once you factor in all of your clothing, all of your furniture, all of your electronics, your books, dishes, kitchenware, etc., you likely have thousands more than you've considered. A typical renters insurance policy with a personal possessions limit of $30,000 would probably cover you adequately, but once you start adding everything up you might even want more protection.

Cost for a typical renters insurance policy is surprisingly low. According to the III, here in North Carolina the average cost for renter's insurance runs about $157 per year, which is only about $13 a month.

Considering what you get for that $13 per month premium payment is also to be seriously taken into account. Not only are your personal possessions covered against numerous threats such as fire, smoke, explosion, theft and other perils, you also have significant liability protection. This means if someone becomes injured while on your rental property and you end up getting sued for damages or medical costs, you have a certain amount of liability coverage. Limits for liability coverage are typically around $100,000, and this can go toward court costs, legal fees and any judgments you face.

For a few dollars more, you can increase policy limits by quite a bit. This may be the lowest cost, highest value insurance you can buy. One time use could pay back a lifetime of premium dollars!

Bundling Renters and Auto Insurance: 4 Things to Know

If your insurance company offers this particular discount, bundling renters and auto insurance together is a way to potentially save some money as opposed to buying these two coverages separately. This bundling option is offered by most insurers that sell both auto and renters insurance because it increases their business.

It not only saves you some premium dollars but also helps make your insurance portfolio easier to deal with since you can transact business with a single agent and have contact with your insurer through one single contact point when you need to make a claim. Multiple policies carried with one provider also simplifies paperwork/billing, saving time and money for you and your insurer.

You may save additional funds by adding more policies to your bundling renters and auto insurance strategy. Motorcycle insurance, boat insurance and even life insurance can be added to the discount scenario to bring you even more savings.

Bundling Usually Saves Money

Insurers that offer a discount for bundling multiple policies typically give from 5%-25%, with the highest discount commonly for a homeowners insurance policy since, your home represents such a large investment. Renters insurance won't provide as large a discount, but every little bit helps. If your insurance company can get you to add multiple policies to your coverage that's one less client they need to bring in to make their customer quotas.

One caution about bundling policies, however, is to make sure you don't become complacent about your coverages and adopt a “set it and forget it” mentality. You should continue to compare rates with competitor insurers to make sure you're still getting acceptable rates. Just because you have a multiple policy discount from one insurer doesn't mean you shouldn't consider switching companies if you can get a better deal elsewhere.

A Word About Renters Insurance

The number of renters is on the rise, with renters now outnumbering homeowners in a number of American cities. While it's estimated that approximately 91% of American homeowners carry homeowners insurance, only about 46% of renters carry renters insurance. This is according to the 2018 Pulse Survey conducted by the Insurance Information Institute.

Like homeowners coverage, renters insurance provides protection against loss, damage or destruction of the the personal property you have in your residence. It also gives you liability protection and provides living expenses should you be required to temporarily vacate your dwelling following an insured disaster. Yet, renters insurance is relatively inexpensive, costing an average of less than $200 per year.

What Is Enough Greensboro Renter's Insurance?

While it's estimated that approximately 95% of homeowners carry homeowners insurance, according to the III (Insurance Information Institute), 37% of home renters have renters insurance. In some U.S. locations, rentals actually outnumber owner-occupied homes, and their risk of suffering a loss from one of the many perils covered by a homeowners or renters insurance policy is just as great.

A major reason fewer renters take out insurance is likely the fact that homeowners with a mortgage are required by their lending institutions to obtain homeowners coverage. While some renters may be required to have renters insurance as a condition of their rental agreements, most are not subject to such a requirement. Unfortunately, for many, the need for renters insurance doesn't hit home until a disaster occurs and they take a financial hit for something against which they could have easily been protected.

What Does Greensboro Renters Insurance Provide?

When you buy Greensboro renters insurance you're getting protection against the risk of suffering financial loss in several areas. The first is property protection covering your personal possessions in your rental home, if any are damaged or destroyed as the result of a covered peril, up to the policy limits. Your possessions are also covered if stolen. Be aware that if your rental home catches fire and burns down it will be your landlord's insurance that pays for rebuilding the structure but it will pay nothing toward replacing your personal possessions. You should also realize that, just like homeowners insurance, renters insurance doesn't cover losses due to earthquakes or floods. These perils must be insured against separately by additional coverage.

Renters insurance also provides liability protection in case someone is injured in your rental home or sustains personal damage caused by you, a family member or pet. Thirdly, many renters insurance policies provide ALE (Additional Living Expenses) protection. This is coverage to reimburse you if a covered event causes you to have to temporarily move out of your rental home.

How Much Coverage You Need 

                                        

To determine how much coverage you need, make a list of all your personal possessions, determine their value and add these up. Choose between actual cash value (retail value minus depreciation) or replacement value (retail value without depreciation). Expensive items such as jewelry, artwork, coins or other collectibles may be worth more than your coverage limits, in which case you should add a floater.

6 Facts About Named Perils

When you buy homeowner's (or renters) insurance, you're buying financial protection against losses pertaining to your personal property, or, “your stuff”. This includes your home's structure, exterior buildings such as a detached garage or garden shed, and everything within the walls of your home such as appliances, furniture, electronics, clothing, artwork, jewelry, etc.

While each homeowner's policy is different and may be custom designed to fit the policyholder's specific needs, the average homeowner's policy provides similar protections.

Named Perils vs. Open Perils 

Standard homeowner's or renters insurance policies protect against what are called “perils,” which are bad things that can happen to your property that cause you to experience financial loss. An “open perils” policy, sometimes called a “named exclusion policy” or an all-risk or comprehensive policy, covers any bad thing that can happen to your personal property except those things specifically excluded in the policy. In a “named perils” policy, however, only the perils specifically listed within the policy are covered. Here are some key factors to understand about named perils:

1. Named perils can basically represent whatever specific protection you desire in your policy, as long as the insurer agrees and you're willing to pay the cost of the policy that they charge for that protection.
2. Most standard policies cover 16 named perils: 1. Fire/lightning damage, 2. Windstorm/hail damage, 3. Explosions, 4. Riot, 5. Being hit by aircraft, 6. Being hit by a vehicle 7. Smoke damage, 8. Vandalism, 9. Theft, 10. Falling objects, 11. Ice, snow or sleet damage, 12. Accidental overflow or discharge of steam or water, 13. Sudden, accidental cracking, burning, bulging or tearing, 14. Freezing, 15. Sudden, accidental damage caused by short-circuiting, 16. Volcanic eruption.
3. Most standard homeowner's policies do not cover for damage due to floods or earthquakes. Coverage for these perils must be obtained by taking out separate policies or having a special amendment to your standard coverage.
4. Compensation for a covered loss under your homeowner's policy will only be paid after subtracting the amount of your deductible.
5. A named perils policy only pays for losses caused by a peril specifically spelled out in the policy. If, for example, it doesn't say you're covered for sewer backup, you aren't. As the insured, the burden is on you to prove that your loss was caused by a named peril in your policy.
6. Because only specific perils are covered, these policies are typically less expensive than open perils coverage.