Clients often think they don’t need renters insurance — “Nothing I have is worth that much,” they’ll say, or “I don’t have a lot of stuff.”
That’s how most people think of renters coverage: protection for stuff, and nothing more. After all, it’s inexpensive and it doesn’t even cover the structure itself. So how important can it be, especially if you don’t think you have anything valuable to protect?
Plenty important because you have more to protect than you realize. You need to stop thinking only about “stuff.” Here are three key financial protections a renters policy provides:
Loss of use coverage. What would you do if a fire or other issue forced you out of your home? You would have to find a temporary place to stay, maybe even for months — which might cost you more than your normal rent. Loss of use helps cover that and other additional expenses.
Personal liability protection. If someone trips and injures themselves in your unit, they could sue you. If your dog bites one of your guests, they might file suit, too. Yes, lawsuits happen — even among friends. Renters insurance can help cover legal expenses and even judgments against you. (Some dog breeds may disqualify you from coverage, so be sure to inform your agent of all dogs in the household.)
Personal property coverage. Wait, doesn’t this mean your stuff? Well, yes. But really, this coverage protects your finances. Even if you don’t think you have anything valuable, take a minute and mentally add up everything you own (note that if you do have any high-value items, such as jewelry or heirlooms, you may need additional coverage). Now imagine how much it would cost to replace it all. It’s probably a higher number than you thought — and that’s why renters insurance is so important.
Do you have a college student living away from home? In some cases, a student residing in a dorm may have some coverage under their parents’ homeowner policy. However, students living off-campus may need a renters policy. The coverage is usually inexpensive and can offer peace of mind. Your ABI Insurance agent can help you determine if you need to purchase a renters policy. To learn more, contact us at 503-292-1580.
Reposted with permission from the original author, Safeco Insurance®.
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