Absolutely.
By Aaron Harris
Ever wonder why property managers strongly recommend that you obtain renters insurance? Whether you’re renting your own pad or have a son/daughter renting a college apartment, renters insurance is important. If you took a few minutes to add up the value of all of your personal belongings including clothing, furniture, electronics, your prized movie or ceramic owl collection, you would probably be surprised at the value—and more importantly the replacement costs of your personal property. The most common misconceptions of renters insurance are, “I won’t need it”, “it’s too expensive” or, “my personal belongings aren’t worth anything.”
In reality, renters insurance is affordable and not only does it cover those personal belongings that you may think aren’t worth much should your rental and personal property be damaged by fire, water, etc., it also covers your liability. Students leaving for winter break and forgetting to leave the heat on, causing the water pipes to freeze can be a very messy clean up upon return from a nice, long winters nap. Most landlords are not forgiving of this damage when caused by the tenants neglect, and in turn can expect you to pay for the damages. Water restoration and cleanup is not a minor expense these days, especially if surrounding units are also damaged.
It should also ease your mind that should your rental home be inhabitable due to damages (whether your are liable or not), your coverage includes displacement costs and alternate living arrangements including lodging, restaurant visits, and any other temporary living expenses that occur.
Renters insurance also covers the liability of your guests. Accidents are inevitable—whether it’s children playing outside and a fast ball getting by the catcher and breaking the neighbors window, or your clumsy Aunt Louise tripping and falling down the stairs and breaking her hip, your renters insurance will have you covered and you won’t have to pay for these expenses by using up your rainy day fund.
On average, coverage for $10,000 in personal property and $100,000 of liability usually costs around $120 per year. Some policies can be higher but are usually less than $200 annually. That’s less than your daily caffeine fix. Some insurance companies can also bundle renters insurance with your home and auto. This works well for parents with students in college housing. Contact your Nest Agent to learn more about insurance offered in your area.
Some landlords require renters insurance, some don’t. But when considering the benefits versus the expense, spring for the cost of the renters insurance. Should it be needed, it will be worth every cent and the peace of mind, too.
Aaron Harris is an Associate Broker with Nest Realty, New River Valley. Born and raised in Southwest Virginia and a graduate of Radford University with a Bachelor of Business Administration in Accounting, she has over 13 years of experience in residential and commercial property management.