Renters insurance is considered by many to not be a necessity; after all, a tenant doesn’t own the property, so why would they need to have insurance at all? On a home policy, much more than just the structure of the home itself is protected. Any homeowners policy includes coverage for personal property (AKA contents) as well as limits of liability, which protects you in case you are found to be negligent.
Main components of a renters insurance policy
Coverage for contents and liability are the most important coverage parts of a renters insurance policy. When do these come into play? If you sustain a loss on your personal property (such as a TV, your computer, furniture, etc.) due to a fire, theft, or vandalism, your insurance company will reimburse you for up to the limits listed on your policy. Most people don’t need a great deal of coverage, but most companies require at least $15,000 worth of personal property on a policy. You may not have $100,000 of contents in your apartment, but furniture, clothing, technology and jewelry can add up quickly.
Just as important is your liability coverage. If you leave the windows open during a rainstorm that floods your unit or you leave the stove on which starts a fire, you could be on the hook for the damage. Because you were liable, your landlord’s insurance company will come after you for the damage. If you do not have a renters policy, you will have no liability protection and could be on the hook for tens or even hundreds of thousands of dollars. The liability coverage on a renters policy also follows you wherever you go; if you are sued or liable for damage off your rented property, you will still be covered.
How much does it cost?
The good news is that a renters policy is one of the most affordable policies available. Because the property a renter resides in is insured by the owner of the property, a renters policy does not cover things like wind or hail storms that can damage the outside of the building; thus, the renter does not need to front these costs. Renters policies can be as little as $12-15 per month, depending on the personal property and liability limits.
Eckburg Insurance Group is the largest home and auto insurance provider in northern Illinois. We can cover all your home, auto, business, and life insurance needs. Our dedicated staff, made up almost entirely of men and women who were raised in our community, works tirelessly everyday to keep you protected. Call us today at (815) 877-4100 or click here for a quote!