Call Us Today: (205) 822-6778

Renters Insurance

There are many reasons people choose to rent rather than buy a home.

You may be a college student, saving up for a down payment on a house or you could simply like the ease of apartment living.  Whatever the case, it is a good idea to become familiar with renters insurance and how it can protect you.

What Is Renters Insurance?

Hughes Insurance Services Of AlabamaRenters insurance covers your personal belongings or “contents” against damage and loss from events such as theft, fire, and even smoke, which can be quite destructive. Your contents insurance may provide actual-value reimbursement for your items, or, for a slightly higher premium, may cover your full replacement cost. If most of your possessions are older or worn, the more expensive policy is ideal as you will be able to purchase new items to replace everything you lost.

Your renters insurance will typically cover the cost of temporary housing if your home should be uninhabitable for a period of time following a disaster. It is important not to assume that your landlord will cover this cost for you as that will depend upon the landlord’s specific coverage.

Finally, your policy will provide liability insurance should you be held responsible for an injury to a visitor in your home. This coverage can be quite beneficial as medical bills can add up quickly. Even something as minor as a trip to the hospital for stitches can cost more than a full year of renters insurance coverage.  If the injured person chooses to pursue legal action against you, your renters liability insurance would pay for your legal defense, up to the limits set on your policy. If you do not have renters insurance, these costs would be your responsibility to pay out of pocket.

Statistics about Renters in the United States

  • In 2010, the U.S. Census found that approximately 35% of all homes in America were renter-occupied.
  • In 2012, a poll conducted by ORC found that only 31% of tenants in this country carry renters insurance.
  • The average renter owns $20,000 worth of personal belongings.

Do I Need Renters Insurance?

While you may not have a lot of expensive personal belongings, if you take the time to write down an inventory and an estimated value of everything you own, you may be surprised.

Be sure to list everything including all of your furniture, clothes, dishes, electronics, jewelry, appliances, and even cosmetics. Now think about how much it would cost to start with nothing and replace everything you own. That is exactly what you would have to do if a fire or natural disaster caused you to lose everything.

Now look at your most valuable items. What if they were stolen? Could you afford to replace them? Statistically speaking, apartment residents report burglaries more frequently than people living in houses. Renters insurance allows you to be prepared so that you will not be faced with undue financial burdens to get back on your feet after a loss.

How Much Renters Insurance Do I Need?

When you get a quote for a renters insurance policy, you will have to decide how much personal property coverage and liability coverage you need. You will also have to consider whether you want to purchase additional endorsements to cover specific items, such as high value jewelry or collections. Additional coverage will increase the cost of your policy, but renters insurance costs are still typically very reasonable even with full coverage.

There are several steps involved in deciding how much renters insurance you need.
  • 1. Decide how much coverage you need for your personal property. As mentioned above, assess your belongings including furniture, electronics, clothing, artwork, kitchenware and collectables. Note that if you experience a loss, your reimbursement costs cannot exceed the coverage amount you choose, so be sure to think this through. In the event that you were to lose everything, would your coverage be enough to allow you get back on your feet and start over?
  • 2. Choose the amount of liability coverage you want. Your liability insurance will provide coverage for medical bills if someone is injured on your property, as well as legal expenses if needed. Since the cost of a lawsuit and legal fees can exceed $1 million, many insurance professionals recommend purchasing more than the standard coverage. If your liability coverage limit is $100,000, you could end up paying the costs of damages and legal fees out of pocket. Even raising the limit to $300,000 can provide better peace of mind. While raising your liability limit will increase your premium, it’s typically much more affordable than you would think.

Most insurance companies impose caps on how much coverage they will provide for various categories of personal belongings. If you have an extensive amount of electronic equipment, jewelry or any other sort of expensive collectable, you may want to consider purchasing additional endorsements, or riders, to obtain full coverage for these things.

Call Hughes Insurance Services of Alabama today for your free no obligation renters insurance quote.

Hughes Insurance Services Of Alabama

Contact Us:

400 Century Park South
Suite 106
Birmingham, Alabama 35226
(205) 822-6778
(205) 417-1444

Our Location: