So is renter's insurance really that important?
Nationwide survey respondents--more than 1,000 renters ages 23 to 35--said it would cost an estimated $5,000 to replace their belongings in the event of a catastrophe, but 40% do not see renters’ insurance as a necessity. With millennials being the largest demographic in America at 86 million (7% larger than the baby boomer generation), a large population of renters have a significant amount to lose from being uninsured. (Source)
Here are a few things to consider if you are currently an uninsured renter:
- Those without renter's insurance are significantly more likely not to know the value of their possessions. Creating a home inventory will help ensure you are adequately covered.
- By purchasing renter's insurance, your belongings are covered against losses from fire or smoke, lightening, vandalism, theft, explosion, windstorm and water damage (not including floods). Your possessions are not covered by your landlord's insurance.
- Like homeowners insurance, renter's insurance also covers your responsibility to other people injured, at your home or elsewhere, by you, a family member, or your pet, and pays legal defense costs if you are taken to court.
- Renter's insurance covers additional living expense (ALE) if you are unable to live in your home because of a fire or other covered peril.
There are two types of renter's insurance policies:
- Actual Cash Value - pays to replace your possessions up to the limit of your policy, minus a deduction for depreciation.
- Replacement Cost - pays the real cost of replacing your belongings (regardless of depreciation) up to the limit of your policy.
The I.I.I. offers a Renter's Insurance Checklist that can help you select the right coverage for you.
At ALINK Insurance Services we would be happy to answer any questions you may have regarding this important (yes, it's important!) coverage. We're here to help!
Denver Metro/Parker: 303-752-6479
Colorado Springs: 719-473-6262
Surrounding States: 877-643-6148