Dowling Insurance

You’ve finally found the apartment of your dreams. Now, you’re probably wondering if that renter’s insurance policy is really worth it.

Although a majority of American renters go without renter’s insurance, purchasing a policy can be a smart move for a variety of reasons. Your personal belongings, accident liability, and more are all things to consider when seeking out a renters insurance policy. Not to mention the average cost of a policy is about $200 per year.

What’s It Worth?

First, evaluate the value of your personal belongings. Although everyone’s possessions aren’t worth the same monetary amount, a renters insurance policy can cover the cost of just about anyone’s stuff.

Take inventory of electronics and other big-ticket items you have at home. Do you have a desktop or laptop to work from home with? Several cameras for photography or videography? What about high-end furniture? You may want to purchase a renters insurance policy to have all your things covered if a fire or other destructive disaster occurs. For about $15 per month, this isn’t the only no-brainer.

What Might Happen

As we all know, accidents happen. What you don’t want is to be held liable for the others’ accidents which may occur in your home.

Most renters insurance policies include basic liability. So again, for about $15 per month, you can save yourself from thousands of dollars worth of medical bills incurred from a silly mistake.

What’s Covered?

Full disclosure: a renters insurance policy won’t cover absolutely everything. But here’s what it will cover.

Renters insurance covers losses that result from fire or smoke, theft, water damage, and storms. Flood and earthquake damage is usually under a separate policy. There is an overall ceiling on how much your policy will pay out in each claim. Talk to your insurance agent for more information on this ceiling or caps on categories for losses. For instance, if your camera is worth $5,000, and your policy caps the payout at $2,000 if its lost, bring this up to your agent.

While a policy may not cover absolutely everything, the benefits of a renters insurance policy for just $200 far outweigh the potential costs of not being covered.