Experts in the industry say that although moving day can be a very complex time and there are already a number of things that a renter has to remember, renters’ insurance should also be considered to be one of those vital elements on the moving day checklist.
While some landlords require that their tenants have a policy, others leave it up to the individual renters. It helps to protect renters from damage, theft, or destruction of their valuable and personal items in the case of a break-in, fire, or other unforeseen event.
It is important for renters to realize that in the case of this type of catastrophe, the property insurance that the building owner holds will not cover the contents of the individual units. Moreover, in the case that the home itself becomes uninhabitable, some policies cover stay at a hotel or can put the policyholder up in corporate housing, depending on the length of time it takes to make the home habitable once more.
Some policies will cover up to 100 percent of an individual’s living expenses for up to a year including many costs that result from being displaced, from meals to transportation costs, and even dry cleaning. The insurance may also cover the expenses relating to the replacement of the destroyed possessions.
While the cost of this type of insurance is usually cheap, many still do not have this type of insurance. One of the ways to keep the premium down is to see if you auto insurance carrier offers renters insurance. Many companies offer a multiple line discount that can even bring your auto insurance rates down.
That said, according to a spokesperson from State Farm in Chicago, Missy Lundberg, who spoke of statistics from the Insurance Information Institute, only three in every ten renters are insured. She stated that “That just shows there’s a huge misconception that you don’t need it.”