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Why Do I Need Renters Insurance?

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Do I Need Renters Insurance

If you do not own a home, you are off the hook for purchasing homeowners insurance but that does not mean that you do not need to buy any insurance at all. No matter what your lifestyle or status, your belongings should be insured by a rental policy.

If you live in a rental home, then the landlord insures the home itself. That is, the building and appliances that come with the rental. But if there is an incident where your own personal property is damaged, such as furniture or electronics, then you will pay out of pocket to cover the damages. Therefore tenants choose to purchase renters insurance to help cover losses and replacement costs.

What is Renters Insurance?

A standard renters insurance policy covers your property in the case of damage or theft. It can also cover medical expenses and personal liability if an injury occurs at your place of residence. Carrying renters insurance is an affordable way to ensure that your hard earned money is safe in times of uncertainty. The Insurance Information Institute quotes that the average annual premium for renters insurance is around $200 per year, or $17 per month.

Is Renter’s Insurance Required?

In many cases, landlords require renter insurance be carried by tenants. Your lease will signify this specification and you may be required to show proof of coverage. Rental coverage is not required by law but it is legal for a landlord to require coverage as part of a rental agreement.

What is Covered with Renter’s Insurance?

Personal Belongings

Personal Property coverage extends to all of your personal property. This can include living items such as furniture and clothing or electronics such as televisions and laptops. This coverage applies whether the belongings were inside your home, vehicle, or another location with your person, such as on vacation. Many choose to forgo this coverage because they don’t feel they have enough expensive items but the average 2 bedroom apartment is considered to have around $30,000 worth of property and even more for houses.

Personal Liability

Liability coverage is necessary to have in case of injury or incident on your property. Even if you do not tend to have visitors or high incident items such as trampolines, sudden accidents can happen due to slips or trips. This coverage not only covers medical expenses incurred but also covers fees brought on by a lawsuit. Common instances where renters liability coverage is used are in instances where a family pet bites a visitor or a visitor slips on a stairwell.

Loss of Use

In cases where your home may become uninhabitable for a season such as in the instance of fire, water, or smoke damage, renters insurance will not only replace damaged items but will also cover additional living expenses. This means that if you must live in a hotel or temporary rental while repairs are being made, renters insurance will typically cover rental and food costs of your temporary stay.

Coverage Add-Ons

There are instances where damage is not covered under an insurance policy such as with floods and earthquakes. With these instances it is important to purchase floaters or add-ons to your standard policy. These policies can also include specific expensive items such as jewelry, furs, collectors items such as baseball cards, and high price electronics.

It is important to note that many policies have limits on how much can be covered toward a specific type of item under a standard policy, such as: $2500 for electronics or $1500 for jewelry. Adding a high priced computer or an engagement ring as a personal article policy to your standing policy is a much more affordable option (dollars per month) than buying individual stand-alone policies for these items.

Where to Start

At Gebhardt Insurance Group, it is our goal to connect you with the insurance products and services that best suit you. In many cases, it is wise to bundle your renters insurance with your current carrier for auto or life insurance for a discount.

As Independent Insurance specialists, we can find you the best deal for all of your insurance needs. Call us today to begin the search for the best renters insurance policy for you!

Renter Insurance Coverage

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Renter Insurance Coverage

Across the country, there are approximately 43 million households who rent, which equates to about 37% of all households. Among homeowners, roughly 95% maintain a homeowner’s insurance policy; however, merely 40% of renters have rental insurance coverage. These policies provide coverage for incidents of theft, vandalism, fire, and other adverse events.

Renters insurance provides compensation to replace possessions, protect you from liability for injuries, and for temporary accommodations if the property needs repair. Renters insurance is among the most affordable types of insurance. Renters in the Casa Grande area are encouraged to contact the Gebhardt Insurance Group for assistance with rental insurance. We can also provide you with a comprehensive review of homeowners insurance and any other insurance needs you may have.

Current Market Trends (U.S.)

Many younger people (“millennials”) are choosing not to buy a home in the early years of their career. Homeownership among those under age 35 is now approximately 34%. This trend is attributed to several factors including increasing levels of student debt and stricter lending requirements regarding down payments. Approximately 56% of renters under the age of 35 do not maintain rental insurance. Roughly 40% of these individuals do not perceive a need for renters insurance.

Renters Insurance in Arizona

Arizona’s Department of Housing is responsible for the rights and obligations involving rental housing. These are contained in the Arizona Residential Landlord and Tenant Act. The provisions do not impose any mandates regarding renters insurance. A provision in the Arizona Association of Realtors template for lease agreements states they “strongly recommend tenants obtain and keep” this coverage. Landlords may require that their tenants have renters insurance.

Personal Property Protection

One key aspect of renters insurance is to protect your personal possessions in case they are damaged or stolen. Some examples may include electronics, furniture, and clothing. Some policies may also provide coverage for property items in off-site storage units. It is critical to gather an inventory of the items that you own for two reasons. First, to calculate the value of your property in order to be sure you select an adequate amount of insurance coverage. In addition, it is important to have documentation to support the existence of your belongings. This evidence may be proofs of purchase, receipts, and serial numbers. This information should be kept outside the home so that it is not potentially destroyed in a fire or other event.

Replacement Cost Coverage vs Actual Cash Value

A rental insurance policy will specify how compensation will be calculated for losses of property. Actual cash value is the most commonly used. It pays an amount that reflects the value of the item at the time of loss or damage. This calculation accounts for any potential depreciation of an item’s value since it was originally obtained. The replacement cost value is simply based on the original cost when the property was purchased. You should expect to pay at least an additional 10% to have replacement cost value coverage for your possessions.

Additional Coverage for Expensive Items

A rental policy will have a maximum amount of coverage available specifically for personal property. For items with significant value, such as jewelry, artwork, or firearms, you will need to address these individually with your insurance company. Typically, an “add-on” or endorsement is necessary and is available for an additional cost. Be sure to consult with your insurance professional for details regarding these types of coverage.

Certain Exclusions

Basic rental coverage is applicable to events such as fire, water damage, wind, hail, or lightning. Two natural disasters that are usually excluded from this coverage are earthquakes and floods. Those with a home office should also be aware that business-related property may not be covered. Other potential exclusions include if you accidentally misplaced an item or something is damaged by a pet. Carefully review the provisions of your policy agreement to verify these concerns.

Personal Liability

Rental insurance may also provide coverage in the event that someone is injured on your premises and you are liable. For example, if your dog were to bite a person. Some of the potential expenses that your policy may cover include the following:

  • Medical bills from diagnostics or X-rays
  • Emergency medical response and transportation
  • Medical payments from surgical procedures
  • Rehabilitation such as physical therapy
  • Compensation for lost wages due to an inability to work
  • Property damage that the party incurred

Interim Housing & Expenses

If an event renders your home uninhabitable a rental policy will afford you some benefit. For example, if a severe weather event were to severely damage the roof. Your insurance will compensate you for temporary alternative accommodations. This may include a hotel stay and daily living expenses while the property is undergoing repairs.

Premium Costs

The cost of a renter’s insurance policy is referred to as the annual premium. There are a host of potential factors that an insurer may consider when calculating renters insurance quotes. The value of the property that is being insured will generally be a primary factor. Some rental insurance policies may simply provide $5,000 to $10,000 in personal property coverage. Those in need of more coverage may extend to $40,000 or more. Insurers may consider your past claims history. Those who have filed an insurance claim in recent years are likely to pay higher rates. The credit history of the insured party may also be used in the formula for rate calculation. Data suggests that those with poor credit are more likely to file an insurance claim. Another element is the deductible selected for the policy.

Policy Deductible

The deductible amount is what the insured party must pay toward a claim. Deductibles are common in other areas of insurance including automobile and homeowners. Once this amount is paid “out-of-pocket”, the insurance coverage pays the remainder up to the policy’s coverage limits. Common rental insurance deductibles range from $500 to $1,000. Choosing a higher deductible will generally lower the policy premium.

Renters Insurance Premium[1]Annual Average
National (U.S.)$187
Arizona$195
California$207
New Mexico$183

Potential Discounts

Rental insurance providers may offer discounts to attract potential buyers. Those serving in the military or who are over 65-years-old may qualify for special discounts. Many insurers offer a discount when the policy is “bundled” with another form of insurance from the same company. Those who implement safety measures such as by adding deadbolt locks or a fire suppression system may also qualify for discounts.

Agency Provides Renters Insurance in Casa Grande

Are you aware of the importance of maintaining renter’s insurance coverage? This form of coverage will compensate you if your possessions are lost due to theft, fire, and other adverse events. Renters insurance may be critical when facing a potential lawsuit if someone is injured while on your property. Our team of professionals at the Gebhardt Insurance Group has been providing renters insurance for many years in the local community. Contact our office today at (520) 836-3244 to obtain a quote that is properly tailored for your protection.

Reasons Why You Need Renters Insurance Before the Holidays

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It’s that time of the year again. This holiday season is for getting together, decorating, dinners with family and friends, and a whole lot of other things. If you are renting an apartment, there is another thing that you must not forget this Christmas: renters insurance.

You read that right. Insurance is highly important this time of the year. For instance, with the hustle and bustle of the Holiday season, the streets are going to be busy. More cars, the more risk of bumping into another car or getting pulled over. If you get pulled over with no insurance in Arizona, then you’ll be trouble. In like manner that when you are renting your place and you encounter problems during the Holiday season, then your happy season is over.

Renters insurance is highly important. This is because everything inside your apartment is not your landlord’s responsibility, but yours. Considering that, based on analytics, there is a spike in the number of accidents, home mishaps and burglaries that occur during the Holiday season, then all the more reason that you need to be insured.

The following are the main reasons why you need renter’s insurance before and during the Holiday season:

House Fires

Based on the reports of the National Fire Protection Association, there is an increase of fire incidents in homes during Christmas season. The primary causes of fire in apartments are candles, space heaters and Christmas trees. Because of this, there is also an increase in house fire insurance claims this time of the year.

Renters insurance protects your possession in case of fire in your apartment. It will still cover you even if the fire started from your neighbor’s home. Moreover, it protects your belongings that have been damaged by the fire and smoke. Instead of waiting for something bad to happen, check your fire detectors and electrical wirings, and be extra cautious. Better yet, get insured.

Home Breaks

Home breaks or burglaries are more common during Christmas season than in any other months of the year. According to the FBI, there is a spike in a number of burglaries in the country during this time of the year. In connection with this, there is an increase in theft claims during the holidays. This just goes to show, more than in any other season, you need extra protection and caution for your valuables and belongings. Don’t wait for the burglars to lurk while you are busy shopping or celebrating the holidays. Get financial protection. Renters insurance will pay for the loss in the event of a burglary.

Slip-and-Falls and Personal Injuries

With the coming of Christmas, you will surely expect guests in your apartment. Friends and families will come over for dinner and get-together. Whatever happens to them, God forbid, while they are on your property is your responsibility. If a guest slips and falls while inside your apartment during this time of the year, then you are obligated to pay for any medical expense, among others. Your guest might have too much wine or beer after your dinner. A slip or personal injury may likely to occur. It’s best to get yourself financially protected in mishaps like this. Consider this another reason why you need renters insurance before the Holidays.

Get Insured

You may think that getting insurance is an additional financial burden. You surely need extra cash for the Holiday expenditures. But getting insured not only gives you peace of mind during this stressful season. It is also easy and affordable to get. Just weight on the benefits and scenarios mentioned above. It’s always better to be ready than sorry.

Contact Gebhardt Insurance for your renters insurance concerns.

What is a Renter Insurance Policy?

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Renters Insurance

What is a renter insurance policy? It is similar to a home insurance, but applies not to homeowners, but renters. So if you just rent your house or apartment, then this is the insurance you need.

Basically, it is a group of coverages with a primary purpose of protecting you and your belongings. The types of such insurance policy include protection for your belongings, liability insurance and additional living expenses. Also referred to as tenant insurance, this policy protects you in case of a visitor injury or a break-in.

Personal Property Coverage

This is a typical component of a renter insurance. This covers the cost of replacing your personal belongings in case of damage or loss. This applies to risks such as theft and fire damage. This means that if you rent a property and you are covered by a renter insurance and any of your belonging has been stolen or destroyed, then the coverage may help pay for them, whether it’s for repair or replacement.

With this, it is important that you know your coverage limits. The limit is the maximum amount that will pay for the personal property lost or damaged. If you are unsure of your coverage limits, contact your insurer or agent and check what is or may not be covered.

Liability Coverage

Renter insurance policy also offers liability coverage. This will protect you in the event that you are found to be legally responsible to any damage or injury caused to or by other people while inside your property. If you are covered, then you will no longer pay out of your pocket for any cost involved. This is important because you can never be sure when an accident hits. Again, know your coverage limits. You may get an additional coverage as needed.

Additional Living Expenses

Your rented place serves as your home until your contract of lease expires. But what happens if a fire damaged your rented home? What will you do now if you are unable to live in your home because of damage? The solution to this question is to get renter insurance.

This kind of insurance typically includes additional living expenses coverage. This coverage helps pay for other costs you incur while you are still unable to live in the place you are renting. Say for example, if your rented place has been damaged by fire, you certainly would need to move out while repairs are ongoing. During this time, you will have to rent another place or stay at a cheap hotel. The costs that you would incur, excluding the basic expenditures, during this period will be covered or paid for by the additional living expenses coverage. But as to the amount covered, this will still be subject to the coverage limits of your policy.

If you are just renting your home, living can surely be costly. How much more if any damage or injury happens and you are not financially ready to pay for such? Thanks to renter insurance, now you can live in your rented home with peace of mind, knowing that you will be protected and covered in case something “costly” happens.

For your renter insurance needs, make an appointment with Gebhardt Insurance.