Fire, lightning and theft are just a few of the many perils covered under most renter’s insurance policies. Renter’s insurance is for personal property that is not covered by a landlord.
“Insurance is there to put you back where you were before the loss occurred,” said Marlene Sims, office manager for C.E. Davis State Farm Insurance Agency.
The price for policies varies among companies, but for State Farm Insurance, the minimum is $10,000.
“Each item is covered up to a certain amount,” Sims said. “If the property is valued at more than that amount, the person will need to purchase more coverage.”
For example, at State Farm, jewelry is covered up to $1,000. If someone has jewelry they believe is worth more than $1,000, they will need to purchase more coverage for those items.
“If people need more coverage for something, the price per month will increase,” Sims said. “For someone who has coverage in the $10,000 to $15,000 range, they will be paying about $10-$12 a month.”
Another factor that plays into the price of the policy is the location of the property.
“It would cost more if you live in a city as opposed to a remote area because the chances for loss are greater,” Sims said. “It also costs more if there is no fire hydrant near your property, as it would take longer for the fire-fighters to put out a fire.”
A student living in the residence halls, whose parents have homeowner’s insurance, is already covered and need not take out a renter’s policy.
A lesser-known fact is if someone take out a renter’s insurance policy and something happens to his or her apartment or house while under contract, the insurance agency will pay to find other lodging.
“As long as you have the minimum policy, we will find you a place to live,” Sims said. “State Farm provides you with a place to live for up to 24 months.”
The availability and specifics of renter’s insurance may vary by state and by one’s particular situation.
Bill Graver, vice president and general manager for Buckeye Real Estate, said they encourage their renters to obtain insurance for their belongings.
“We do recommend that students have renter’s insurance,” Graver said. “In our lease, we ask renters to obtain insurance.”
Graver said it is not expensive and well worth it to purchase.
“For the cost, it’s probably your best value,” Graver said.
One thing all renters should know is the importance of keeping receipts.
“Always keep your receipts from major purchases,” said Carolyn Clark, office manager for Ivon Brugler and Associates, a Nationwide Insurance Agency. “You need to prove that you owned the item.”
Clark said there is only one thing better than a receipt.
“Take a picture of the entire room. That way we know absolutely everything that was in that room,” she said. “Also, if you use a picture as proof, your claim usually gets settled faster,” Clark said.
