Renters Insurance…Priceless

Unlike homeowners, people who rent apartments often think that there is no need for them to purchase insurance, but what happens if there is a fire and all of your possessions go up in flames? Can you afford to replace everything from clothing to furniture to your new expensive TV? Most people think they don’t own enough to worry about it. However, the fact is that if you tallied up the cost of everything in your apartment you would probably be surprised to learn just how much it would cost to replace all of those items.

Renters Insurance also provides you with liability coverage in the event you were to get sued. The common response to this is usually “Well I have nothing for them to take” but that is not actually true. If you lose a lawsuit the courts could have your property liquidated and garnish future wages to help pay for the damages awarded in the lawsuit. Coverage limits up to $1,000,000 are available through most insurance carriers. Whether you are sued for bodily injury as a result of a negligent act, or personal injury due to defamation of character, these issues are more common now due to the invention myspace, facebook, and twitter. These are all revolutionary ways of keeping in touch with those around us, but they also expose us to a greater threat of personal injury exposure. People have been fired from jobs, lost lucrative contracts, and worse as a result of what has been posted on various social media sites. Once something is put on the web, there is no getting it back.

In addition to covering your personal property and liability exposures, there are other coverages provided through a renter’s policy that are equally as important. Identity fraud protection is an important one, with most carriers offering $15,000 worth of coverage for lost wages, application fees, and attorney expenses that you will accrue while trying to get your credit back on track after a your identity is stolen. This is an increasingly common issue in today’s society where more and more of our lives our conducted online. Whether you make online purchases, or use a debit or credit card to pay for meals and groceries, you can become a victim of identity theft. There are devices that crooks can use to obtain your personal information from simply swiping your card through a reader. Some crooks go so far as to attach them to ATMs. They look just like a regular ATM card reader, but it is actually a cover that is placed over the original reader which directs your personal information to the thief. They can then create a new card with your information and wreak havoc on your credit.

The most common renters’ policies have personal property coverage limits between $20,000 and $30,000 and liability coverage between $500,000 and $1,000,000. All of this coverage (and peace of mind) can be purchased for short money. Combining your auto policy with a renter’s policy also gives you additional discounts which can bring your premium even lower.