If you’re a new college grad looking to lease your first apartment or a homeowner downsizing to a rented space, you’ll need insurance to protect the things you love. Fortunately, renters insurance can do that.
What is Renters Insurance?
Just like an auto policy protects your vehicle, renters insurance takes care of protecting your belongings and personal liability. Even though your landlord has insurance on the building, it most likely doesn’t cover your personal belongings. That’s where ERIE can help.
The best part? Renters insurance is really affordable. You may even qualify for a discount if you already have an auto policy with ERIE. In some cases, the discount actually offsets the price of the renters insurance policy.1
How to Get Renters Insurance
Here are six things to consider when you’re ready to purchase a renters insurance policy:
- Estimate how much your belongings are worth. Many times, we underestimate the value of our belongings. Making an itemized list can help determine the amount of insurance you need.
- Make sure you have replacement cost loss settlement. Replacement cost reimburses you for the original value of the item (or one of similar kind and quality at today’s cost if the item is no longer available). If you don’t have replacement cost in your policy, then depreciation factors in. For example, if you bought a new laptop five years ago for $1,000, you’d only be reimbursed for the laptop’s worth in today’s dollars minus depreciation. So if it’s only worth $500 today, that’s what you’d get. (Not available in NC.)
- Consider earthquakes and other disasters. Depending on where you live, talk to your ERIE agent about extra coverages you can purchase for your renters policy.
- Choose a deductible. When you think about your deductible, think about a couple questions: “How much premium savings do I want from choosing a higher deductible?” and “How much could I afford to pay out of pocket if I experience a covered loss?” This will help you determine what deductible is right for you and your living situation.
- Think about extra protection for any valuables. ERIE offers coverage6 for theft of certain types of property. If you own expensive items like jewelry, firearms, furs or silverware, you will probably want to add an endorsement to your renters insurance policy to make sure they’re fully covered.
- Pick a liability limit. There are many ways that you could accidentally hurt someone. For example, if your dog bites another animal or person, you will be held responsible. This type of lawsuit can get costly if the injured person has any long-lasting physical scars or impairments. (If you are concerned about having enough liability protection, consider an umbrella policy.
Finally, remember that no matter where or what you’re renting, your ERIE agent is always there to help you get the right coverage for your needs and budget.
How Much is Renters Insurance?
According to National Association of Insurance Commissioners’ data, the average renters policy costs only $184 per year. That works out to slightly more than $15 per month for liability coverage ranging from $30,000 to $50,000 (depending on location) with a deductible between $500 and $1,000.
Here are some other key points to consider when assessing the cost of renters insurance. Of course, there are a lot of variables and you should check with an ERIE agent to see what best fits your needs.
Types of Renters Insurance
Insuring your belongings is a smart decision because your building’s insurance policy doesn’t cover them.
An ErieSecure Tenant® Policy for renters can help keep your property safe. It includes coverage for2:
