Renters insurance is a good idea. You might also get homeowners insurance, boat insurance, life insurance or auto insurance for the same reasons. These are all to protect you and make sure someone is there to help you in the event of an emergency. Financial disaster is not an option.
There are many other reasons to purchase renters insurance, no matter if you live in a converted beach house or in a small studio. These are our top three.
It’s more affordable than you think
People, especially young people, tend to underestimate the cost of insurance. Millennials, for instance, tend to underestimate the cost of life insurance by 213% and Gen Xers, by 119%. Renters insurance is incredibly affordable, with the national average policy costing just $187 a year in 2011. It’s a small price for security and protection of your belongings.
You are not required to be covered by your landlord’s property insurance.
our landlord’s insurance will cover any damage to the structure of the building where you live, but not the contents of the building, i.e. your stuff. Imagine a storm ripping through your roof. Although your landlord’s insurance may pay for roof repairs, they will not pay for water damage to your laptop, which was under the leak. In 2014, 5.3% of all insured homes filed a claim. 97.3% of these claims included property damage and theft. Your landlord’s insurance may not cover all types of losses.
You probably have more than you think
People who rent, especially those who live in smaller spaces, tend to believe they don’t have enough material possessions for insurance. These renters are often the most financially vulnerable and would be the best candidates for renters insurance. It’s worth taking a quick inventory of your clothes, furniture, kitchen supplies, and electronics. The total cost can quickly add up. Renters can do the same. Nearly half of homeowners have taken an inventory in the last nine years to document potential losses.
Are you renting an apartment or a home? Do you like the freedom that renting offers, or do you save for your own home but aren’t ready to commit? Perhaps you’re in college or work and are looking for a way to share your apartment with roommates. You should consider renters insurance, regardless of the reason you are renting.
New Jersey renting is not as affordable as it used to be. Surveys show it is increasingly one of the most expensive places to rent a property. Rent insurance is not something you should be spending much money on if you are paying a lot for monthly rent. This step is important, but it can cost you thousands.
We don’t think so. Continue reading to discover compelling reasons for renters insurance in New Jersey.
Why Renters Insurance
Renters insurance protects your personal property as a tenant and provides liability coverage for you and your dependents. This is a crucial financial commitment. Yet according to a new study reported by Forbes, over half of adults aged 23 to 29 years old who rent haven’t taken out renters insurance.
Your landlord’s policy doesn’t protect you. They have taken out insurance on the structure, roof and fittings of the building. Your property is not covered. You won’t be reimbursed if your goods are damaged or stolen by the landlord.
Renters Insurance covers You for Theft
NJ is not considered the most secure area in the country. Although it is not a war zone, burglaries are common in the state. What would you do if someone broke in to your home and took everything? Your landlord, no matter how nice they might be, won’t care. It would cost you to replace everything. A solid burglar alarm will not deter determined thieves. Insurance is a must to ensure your safety.
Your Covered for Named Perils
You’re not the only one who isn’t sure what a named risk is. It’s a common term in insurance. Natural disasters such as hurricanes and storms, fire and flood are all considered perils. The types of perils and the number covered vary between insurers but renters insurance NJ covers all of the most common dangers, and many of the least common ones, too.
If you break something, you’re covered
You sent a football through the window. You accidentally set fire to the carpet by your children. These are all common things. Renters insurance will pay the landlord back for any damage they cause to their property. Although insurance won’t prevent these types of events from happening again, it will ensure that you don’t spend too much on fixing them up.
It’s Not a Bank
Maybe you’re not looking for the financial commitment of a mortgage just yet and that’s fine. Renters insurance is possible if you have enough money to buy a few pizzas per month. You don’t have to sacrifice on coverage to find affordable options. Think about how much money you have in your possessions. Consider whether you can afford to replace your possessions in the event of a disaster. Insurance is necessary if you are unable to pay.
Your Cover Is Versatile
You don’t have the obligation to follow a plan or take out coverage you don’t require. Your premiums will be lower if you have fewer possessions. You can also easily modify your policy to reflect the fact that you have invested in more valuable items. A plan that does not meet your needs should not be kept. This insurance is versatile and can be cancelled easily if you get a mortgage.
It Might Be Required
Most landlords in NJ ask you to insure yourself and your property when you move in, or when you renew your lease. If something happens to your belongings, they don’t want any hassles. You may be asked to include them in your insurance policy. This means that you cannot cancel your policy until you provide proof of payment.
Get Cash if You Stay Somewhere Else
Insurance covers you for the cost to spend a week in a temporary place if your home is damaged by flooding or you are forced to move out of an area affected by windstorms. Other items, such as food or laundry bills, may be covered by your insurance.