Today, more Americans are choosing to rent a place to live rather than taking on the burden and expense of buying a property. Since the financial crisis and mortgage meltdown a few years ago, realizing the dream of home ownership has become more difficult for many consumers due to tightened financial requirements and larger, required down payments. If you are one of the millions of people now renting a home or apartment, you may think that renter’s insurance is something you don’t have to worry about or consider purchasing. But no matter where you live in New Mexico, you owe it to yourself to learn the real facts about renter’s insurance and understand how very important it is to protect your personal belongings in the event of fire, theft or a weather-related disaster.
Why You Need Renters Insurance in New Mexico
Wildfires in Texas and Arizona, flooding along the Missouri River, and hurricanes in the southeastern United States and along the eastern seaboard. Living in New Mexico, the headlines alone should be enough to make you realize the importance of renter’s insurance coverage. Any natural disaster can damage or destroy your personal possessions. A kitchen fire or even a broken pipe in a nearby apartment can put you at risk unless you have adequate renter’s insurance protection.
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 against theft, fire and natural disasters along with $100,000 of liability coverage.
A comprehensive renter’s policy protects your personal property against damages which occur due to a covered event. 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 if this occurs, but unfortunately accidents do happen. 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.
Common Myths about Renters Insurance
There are many reasons why people think they don’t need renter’s insurance coverage. Unfortunately, most of them are not based in fact. Here is a sampling of the most common myths:
- It’s too expensive. As previously explained, renter’s insurance is actually a great deal. When you consider what it would cost to replace your personal property in the event of theft, fire, or some other covered natural disaster out of pocket, it’s easy to see why having renter’s insurance coverage is a smart choice.
- I don’t own very much. 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.
- My landlord’s homeowner policy will cover my things. Your landlord’s homeowner insurance policy only covers the actual building (structure) where you are living and the land on which it is built. Everything inside of the apartment or home is the responsibility of the renter.
Ways to Save on Your New Mexico Renters Insurance
There are additional ways you can save on the cost of your annual premium:
- If you are comfortable having a higher deductible, choose this option. This means you will pay more upfront in case of loss or damage but it will keep the price of your renter’s policy lower.
- Most insurance companies offer discounts for bundling policies. If you have all of your policies (renter’s, life, and car) with the same company, you should receive a nice discount.
- Non-smokers generally have lower rates for renter’s insurance.
- If your apartment or rental home has deadbolt locks, a security system, and smoke detectors, these safety features can bring down the cost of your annual premium.
Our trained agents are available 24 hours a day to assist you in finding the best New Mexico renter’s insurance policy for the money. No one likes to think about losing their possessions to theft or fire or some other disaster. We can help you navigate through the many plans and options available so that you get the coverage you deserve at a fair price. Start enjoying the peace of mind that comes from knowing that your personal property is protected by renter’s insurance coverage. Contact us today!
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