Cozy Suite

If your sofa is lost due to natural disaster, vandalism, or theft, homeowner’s insurance can help you pay to replace it. However, if you rent rather than own your own home, you might be surprised to learn that your possessions aren’t covered by your landlord’s insurance policy. In order to be reimbursed if your furniture is destroyed, you need to purchase renters insurance.

What is renters insurance?

Renters insurance policies cover the policy holder if their items are damaged due to natural disaster or vandalized/stolen in the case of a break in. It’s like homeowners insurance, but since you aren’t insuring the structure itself (that’s your landlord’s job), policies are extremely inexpensive. All of the items in your home can be covered by renters insurance, though if you have any extremely expensive items (like a rare coins collection), you may have to buy special coverage.

Do I need renters insurance?

While it is illegal to drive without car insurance, you are not required by law to purchase renters insurance. However, keep in mind that for less than $10 per month, you can get a pretty good policy, so most people find that it is worth the piece of mind.

What isn’t covered by my policy?

Every renters insurance policy is different. Typically, you have to purchase special insurance if you want to cover flood damage, and if you live in an area susceptible to earthquakes or tornados, coverage for those problems may cost extra as well.

How can I get a lower rate?

Renters insurance policies are already pretty inexpensive for most people, but you can also get a lower rate by making a few key changes to your policy. First, make sure your insurance agent is aware of “safety items” installed in the rental property. Smoke detectors, burglary alarms, dead bolts, and more can all lower your rates. You can also lower your rate by asking for “actual cash value” coverage instead of “replacement” coverage. With actual case value coverage, you’ll be reimbursed for the depreciated value. So, if your damaged sofa is five years old, you’ll only get a percentage of what it will cost you to replace it with a new sofa. Lower rates are also available for those willing to raise their deductible (the amount of money you’ll pay out of pocket before your insurance kicks in).

Do I have to take picture of my sofa and other possessions?

You don’t have to have pictures of your items in order to be reimbursed in the case of a natural disaster, but it can make the process a lot less stressful. Make a list of everything you own, including purchase price, and take a few pictures or video of every room in your house. Whenever you purchase a big-ticket item, like a sofa, save the receipt and update your inventory. Luckily, most people will never need renters insurance – but it is better to have it and not need it than to not have it and find yourself without any options after a tragedy that destroys your belongings.

Allison works with RentersInsurance.org, where you can go to learn more about when and how to purchase renters insurance

MGB