The collapse of the housing market over the past few years has caused many people to take a fresh look at renting a place to live rather than buying a property. According to the latest statistics, over 80 million Americans now lease a home, apartment, or condo as their personal residence. This number is expected to increase as the mortgage industry continues to tighten its lending requirements and the necessary down payments remain high. Unfortunately, the number of renters who actually purchase renter’s insurance remains dangerously low- around 30 million. If you reside in Hawaii and are leasing a place to live, you should learn about the value of having renter’s insurance protection.
Why It’s Important to Have Renters Insurance in Hawaii
If you live in a rental property in Hawaii, you may already be aware of the importance of having renter’s insurance. A comprehensive renter’s policy protects your personal property against damages and loss in the event of fire, theft, or natural disaster. It can also provide liability coverage in the event a visitor to your home or apartment injures themselves. Many people don’t think about the consequences of this happening, but unfortunately accidents do occur. Without the proper liability coverage, you can be sued for damages. This can put your income, your savings, your personal property and even your future wages at risk.
Insurance experts agree that there are many reasons why people don’t have renter’s insurance. Some misguided explanations are:
- They think renter’s insurance coverage will be too expensive.
- They think their landlord’s coverage will pay for their personal losses or damage.
- They think they don’t own enough personal property to make it worthwhile.
- They greatly underestimate the value of their belongings.
Considering the protection you get with a renter’s insurance policy, it is very much a bargain. A typical policy will generally cost less than $1 a day.
People sometimes assume the landlord’s homeowner insurance will cover their personal property as a renter. Not true. The landlord’s policy does cover the actual structure or building you are renting and the land on which it is built. However, all of the contents of the apartment or rental home are solely the responsibility of the renter when it comes to insurance protection.
Most people seriously underestimate the monetary value of their personal possessions. A great reality check is to make a complete inventory of everything you own- furniture, appliances, clothing, electronics, jewelry, CDs and DVDs. Now imagine having to replace some or all of these items out of pocket. For most individuals, this would be impossible. That’s why if you live in Hawaii, it is important to protect your personal property and cherished possessions by purchasing adequate renter’s insurance.
The Cost of Renters Insurance
An average rental insurance annual premium will generally cost between $200 and $300. The actual amount you will pay depends on many factors, such as:
- Where the property is located.
- The estimated value of your personal property.
- The type of dwelling you live in.
- What type of coverage you select.
- Which deductible amount you choose.
- Your credit history/credit score.
Generally, there are two types of coverage offered to renters. One is Actual Cash Value which pays you the amount an item is worth at the time it is stolen or damaged (depreciated amount). Replacement coverage actually pays you the amount needed to replace the item at the current market price. Replacement coverage will normally cost about 25% more than Actual Cash Value coverage.
Insurance experts estimate that the average cost of renter’s insurance is about $15 per month. For this price an individual can get $30,000 worth of personal property coverage and $100,000 worth of liability protection.
In today’s busy world, it’s easy to put things off. But disasters have a way of striking when you least expect them. A burglary, fire, or weather-related problem can happen at any time and if it does, you want to make sure you are protected. Don’t be faced with the situation where many or all of your personal possessions are damaged or lost and the only way to replace them is to purchase everything yourself. The truth is almost no one can afford to do this.
When shopping for renter’s insurance it’s always a good idea to contact several different insurance companies so that you can compare policies and quotes. We make this a simple and quick process. Our trained agents are available 24 hours a day to assist you in finding the best Hawaii renter’s insurance policy- one that suits both your personal needs and budget. Let us help you get the peace of mind you deserve from knowing that your valuable belongings are protected by renter’s insurance coverage. Contact us today!