Many people mistakenly think that if they are renting a place to live, they don’t need renter’s insurance. If you live in Maine and are leasing your place of residence, you should learn about the value of renter’s insurance and the coverage it provides for your personal belongings and cherished possessions.
Why It’s Important to Have Renters Insurance in Maine
Given the current state of the housing market, more people than ever are choosing to rent rather than buy. But as the number of renters continues to increase, the number of people actually purchasing renter’s insurance is not. It is estimated that only 43% of people who rent carry renter’s insurance. 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.
The average renter’s insurance policy costs between $200 and $300 for an annual premium. This breaks down to around $18-$25 per month, depending on the value of an individual’s personal belongings, where the rental property is located, and other factors. In the scheme of things, this is really a bargain. For this price you can normally get $30,000 of personal property coverage along with $100,000 of liability coverage.
Your landlord’s homeowner coverage does protect the actual building you are renting and also the land it is built on. But all the items you have inside of your apartment or rental home are your responsibility. Without proper renter’s insurance, this means that you alone will have to replace the lost or damaged items. Just imagine having to buy everything at today’s market value. This is probably the most compelling reason why people make the smart decision to purchase and carry renter’s insurance.
It’s a well-known fact that most people severely underestimate the monetary value of their possessions. An easy way to calculate this is to make a complete inventory of everything you own and put a current price tag on each item. You will probably be amazed at how quickly it adds up. You should include furniture, clothing, appliances, electronic equipment, rugs, jewelry and all other items inside of your home or apartment. Unless you can afford to personally pay to replace all of this property, renter’s insurance is the safest option.
Smart Tips When Buying a Policy
- If possible, always buy replacement value coverage. Generally, consumers are given the choice between “replacement cost” and “actual cash value”. They may seem similar, but in fact they are very different options. Actual cash value means that if an item is lost or damaged due to a covered event (such as fire or theft) you will be given what that item costs to replace MINUS the depreciation. Replacement cost coverage will give policyholders the full replacement amount. This type of coverage does cost a bit more than actual cash value but is definitely worth it.
- Be sure you understand what is excluded from your policy. A typical renter’s policy will not include coverage for damage or loss due to earthquakes or floods. If you live in an area where these natural disasters occur, you will need to add separate coverage for them. Some valuable items such as jewelry, artwork, or antiques may also require separate coverage. Check with your agent when writing up your personal policy.
- A main factor affecting your monthly premium will be the deductible amount you choose. The higher the deductible, the lower your cost. If you choose a lower deductible, such as $250, you will pay more for your policy. But if you have a claim for loss or damage, you will only have to pay the deductible amount. It’s important to consider your own financial situation when you decide on your deductible.
- Although it’s not required, it’s always a good idea to catalogue your possessions. For one thing, taking a complete inventory of what you own helps you determine the amount of renter’s insurance you need. Additionally, having a record of your personal belongings can be very helpful if you ever have to file a claim. A written list is fine but it is even better to have photographs and video evidence.
Get Started Today
We are available to assist you 24 hours a day. When shopping around for Maine renter’s insurance, it is always a good idea to contact several different companies. This allows you to compare policies and get quotes so that you can make the best decision when it comes to getting renter’s coverage. Our trained staff can help you do this quickly and easily from the comfort of your home or office. Then you can choose a renter’s insurance policy which meets your personal needs at a price you can afford.
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