Can I Afford a Renters Insurance Premium?
Posted on January 12, 2008
Filed Under Uncategorized |
So you are debating about getting renters insurance. You may ask yourself Is this something I really need to spend my money on?
Having insurance is like having a security blanket just in case bad things happen. Renters insurance typically covers $20,000 in loss of personal possessions in the event of fire, theft, and some acts of nature, and typically $50,000 in Liability protection if someone hurts themselves in your dwelling. Without insurance, you would have to pay this money out of your own pocket . That could be economically devastating.
Why risk it? You would be surprised at how economical renters insurance really is!
,a href=”http://www.rentersinsurancecentral.com”>Renters insurance is relatively inexpensive, and you may well qualify for a variety of discounts. It is really simple. For a quick idea of costs, go on-line and fill out a quick no cost, instant price quote. I quickly checked with 2 companies about a fictional rental unit in NY. They both offered $20,000 in personal property coverage and $50,000 liability coverage with a $250 deductible. The quote from one place was $239 annually and another was $238 annually. This comes out to less than $20 per month. For lower rates, you can raise the deductible. In the case of my fictional rental, if I increased the deductible to $500, I would save about 7%.
For more protection, you can pay more for replacement cost coverage. Beware of companies that offer really low rates - they may be offering you actual value instead of replacement costs on your possessions. In my fictional rental scenario, if I declined replacement cost, the premium price was about $5 less a month, which is a 25% savings. However, there is a big difference between replacement cost and actual value. Replacement costs means you will be reimbursed based on today’s replacement cost rather than actual cash value. If your policy covers actual value of your stuff, the company takes the cost of your stuff when you originally bought it and reduces its value by time/wear and tear and depreciation values. So in the event of an actual claim, you will receive lots less money, many times not enough to cover the price of getting even used replacement items.
I did a very basic 4 question quote just for a quick idea of premium costs. When you decide you really want to purchase insurance, you need to fill out a much more detailed form. It still only takes about 5 minutes, but it will give you a more accurate quote. If you do this on-line at a place that will show you at least 3 other companies’ rates, then you can compare the quotes "apples to apples". You can also call around to different companies and talk to an agent about getting a quote.
It is really easy, and once you see that you can buy a policy that will protect you from loss of thousands of dollars in possessions and liability, for only a couple hundred dollars a year, can you really afford not to have renters insurance?
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