One of the most common misconceptions concerning renters insurance is cost. According to data from the National Association of Insurance Commissioners (NAIC), 29% of millennials guessed that a renters insurance policy costs more than $1,000 per year. In fact, the average annual premium is less than $200, according to the NAIC.
Another common misunderstanding involves the landlord’s policy. The landlord’s insurance covers only structural damage to the building and does not cover the renter’s property losses or personal liability claims filed against the tenant. To get coverage for those claims, you need renters insurance. That kind of policy will cover fire, theft, smoke, vandalism, and in many cases, windstorm losses. Further, many policies also cover additional living expenses should relocation be necessary due to repairs.
Although insurance policies can be written to pay the full replacement cost of damaged items, they aren’t always done in this manner and may instead pay only an item’s actual cash value at the time of damage, which factors in depreciation. Pet damage is another area where you might have to ask for extended coverage, if available.
For information concerning a renters insurance policy, call Hills Insurance Agency. It’s a highly affordable way to gain important financial protection.Reprinted by permission, The Mines Press, Inc. Volume 45, Issue 2. Insurance products are not a deposit, not FDIC insured, not insured by any government agency, carry no bank guarantee, and may go down in value.