Imagine coming home to water everywhere. You slowly walk through your home. Anger floods your emotions. After a little investigating you learn the pipes in your kitchen burst.
It’s hard to put yourself in that position unless you’ve experienced it.
None of us plan for the sudden and unexpected to happen.
Life is known for throwing nasty curveballs.
However, we can be prepared.
Whether you live in a house, duplex, or an apartment, your Landlord’s insurance does not protect your personal belongings or your personal liability. This is your responsibility.
Their are 3 basic reasons you should have MO renters insurance.
Missouri Renter’s insurance is synonymous with protecting your contents (aka your personal belongings). Your clothes, TV, computers, couch, bed, etc.
What does it really protect against?
- Windstorm or hail
- Freezing pipes
If you lost everything tomorrow, could you afford to replace the items in your apartment?
“I don’t own very much. The stuff I do own isn’t worth a lot.”
That’s the response I often hear. And for some, that may be true. Your stuff may not be expensive to replace. But how do you plan to go from zero to whole again?
How much coverage do I need?
Take some time to figure out what you own and what it’s worth. If nothing else, take time to do a home inventory to keep on file.
One room at a time, furniture, clothing, electronics, dishes, bedding, etc. Don’t over look the smaller items either. It adds up quick. This will give you an idea of how much coverage you may need.
Once complete, be sure to take pictures, video, or make a list of all of your personal belongings.
However you document your personal items, store them in a safe-deposit box, at your parents’ house, or in the cloud. It won’t do you any good at your place if the unexpected does happen.
Joe has several friends over for a cookout. It’s one of those perfect Missouri evenings. Joe asks Rick to go inside and bring out the rest of the hamburgers and brats. While Rick is inside he trips over a cord and breaks his leg in several places.
Maybe you don’t own much in the way of contents. But everyone is at risk of Personal Liability.
It’s silly to think one of our friends would ever sue you in a situation like this, but it happens more than you think.
The liability coverage of a renter’s policy covers court judgments and legal expenses up to the policy limit.
3. Additional Living Expenses
Remember the water damage mentioned at the beginning of this post? What if you had to live in a hotel for a month while repairs were made to your apartment?
While your apartment is being repaired, a renter’s policy will help pay for your stay in a hotel or any other additional living expenses out of the ordinary during the time period you are unable to live in your apartment. Limitation may apply.
Lastly, below are some thoughts to consider as you make your decision. Don’t assume you’re covered. Ask questions!
Know your deductible…typically a renter’s policy deductible starts at $250 or $500. Know what the deductible is before you commit.
Find out if your policy is replacement cost or actual cash value (ACV). The TV you purchased 2 years ago cost $2,000. Today it’s only worth $500. A replacement cost policy is going to give you what you originally paid for the TV.
An actual cash value policy would give you what the TV is valued at today. So if it’s only worth $500, that is all you would get.
Jewelry, firearms, or other specific valuables may have a dollar limit. If you have a $5,000 wedding ring, your renters policy may only cover you up to $2,500. Talk with your agent for details.
If you’re concerned the sewer/drains may backup ask your agent about adding an endorsement to cover your belongings.
In Missouri, the average renter’s insurance policy costs $15 per month*. A small price to pay for peace of mind.
*Average Renters Insurance in 2012 | Insurance Information Institute