04.27.2023

Renters Insurance 101

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When renting a home or an apartment, you may find some landlords require renters insurance because it protects them against personal liability, in addition to protecting the tenant’s personal property. If you find yourself renting somewhere that does not require renters insurance, there are still many reasons why you might consider this additional protection.
 

Do Landlords Already Have Insurance?

Yes, landlords have insurance that protects themselves, but not tenants. The rental insurance would cover tenants and all their valuable possessions. Renters insurance is a low cost that’ll add into the budget for personal property.
 

How Much Does It Cost?

Costs vary depending on location, different insurance company rates, and how much coverage is needed. NerdWallet reports a national average of $15 per month, or $179 per year. Insurance companies that handle auto insurance may also have bundle options to help save money.

Many insurance companies will also use your credit score as a factor in determining insurance rates. In fact, people with no or lower credit pay significantly more than those with a better score. If there are ever changes in your credit, or you’ve been working hard to establish or repair blemished credit, get a new quote to see if a higher score can lower your rate.
 

How Much Coverage Do I Need?

When determining the amount of renters insurance you may need, think about the value of your belongings. This number can add up quickly. Determine your amount of coverage by creating an inventory of the things you own or store in your apartment. This will help you assess the value and determine how much coverage you need. Make sure to read into your policy to determine whether your coverage is actual cash value, which takes depreciation into account, or replacement cost coverage, which replaces your items at their retail price of today.
 

What Does Renters Insurance Cover?

Most policies typically cover theft, fire damage, certain natural disasters, water damage, and bodily injuries. There are a few different types of renters insurance that may keep you protected in different ways. 

Personal property coverage is the standard coverage of renters insurance and can help you repair or replace lost possessions up to your coverage limit, including clothing, furniture, electronics, and other belongings. Personal property coverage may help you replace lost items in the event of a break-in or theft.

Liability coverage is available in case you accidentally damage someone else’s property, but may also help cover the medical bills of any guests you have if you are found responsible for their injuries. Finally, additional living expense coverage can help you afford any additional costs you incur if your residence is deemed uninhabitable, including hotel bills.

Protect your belongings easily with the help of Michigan First Insurance Agency, LLC. Contact us today for a quote!
 

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