Renters insurance is something to consider when renting

By Brianna Clabin
Contributing Writer

Most students do not own the place they live in, so renters insurance is recommended. Renters insurance is for anyone who rents a house, apartment or dorm.

“Most people make the mistake of thinking the landlord’s insurance policy covers their personal belongings, but it doesn’t,” Angie Rinock, State Farm insurance agent, said.

“There are two big myths about renters insurance, one is that it’s too expensive and the other is that it’s not needed,” Rinock added. “Not having renters insurance is a pretty big gamble, considering that without it, you face the cost of replacing your personal belongings.”

Renters insurance is important because it protects belongings in the event of a fire, vandalism or theft.

To better understand its importance, Rinock suggests renters ask themselves these questions:

• How much are my belongings worth? (The average person has over $20,000 worth of belongings that are probably not covered by landlord’s policy.)
•    Could I afford to buy it all back again if it were destroyed in a fire or stolen?
•    What would I do in the event of a liability lawsuit against me?
“The process for obtaining the insurance is fairly simple,” Rinock said. “The only requirements are that you must be a renter and be able to make the payments.”

The first step in the process is to check with the company on what can be insured at http://www.statefarm.com/insurance/renters/ins_home_rent_price.asp.

Next, renters should take an inventory of their belongings, to calculate how much they’re worth.

Renters should:
• List each item, when you acquired it and the purchase price or current value.
• Total the amounts of these items for a rough idea of what your property is worth.
• Once this is done, put your inventory in a safe place away from home, for example, in a bank safe deposit box.
• Consider adding photos to your inventory, they can help if you have a claim.
• Inventory checklist:  http://www.statefarm.com/_pdf/home_inventory_checklist.pdf.
• Remember to update your inventory when you make new purchase.

Once inventory is done, an agent gets involved and a plan and cost is discussed.

For college students, this is the panic point, as finances are always an issue.

“In many cases, for less than a couple hundred dollars a year you can protect your valuables,” Rinock said.

“Cost varies by coverages selected and the deductible, but it is remarkably affordable,” Rinock said. “An average renters policy is around $200/yr. (which is about $16/month).”

Discounts are available when getting insurance.

State Farm offers the following discounts:
• Multiple Line Discounts:
When you purchase your renters and auto insurance from State Farm you could be eligible for premium discounts on both policies.
• Home Alert Discounts:
• You may qualify for premium discounts for having such devices as fire or smoke detectors, or burglar alarms.
• In addition, you may be able to lower your premiums with higher deductibles. Higher deductibles lower your premium but increase the amount you must pay out of your own pocket if a covered loss occurs. Ask yourself how much you are willing to pay in order to save on premium.
Being able to get money back or things replaced is the key.

“It is important that when filing for insurance, the renter selects State Farm’s replacement cost coverage to get the most protection for their money,” Rinock said. “This coverage provides payment based on the cost to repair or replace the damaged property at the time of loss, if actually replaced.”

For more information visit www.StateFarm.com or check with your local insurance agent.

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Posted by HeraldAdmin on Feb 19 2009. Filed under Housing Guide. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

Cody Kimball
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