Rental housing rates in the U.S. continue to rise. According to a report by the Joint Center for Housing Studies of Harvard University, 43 million families and individuals live in rental housing – an increase of nearly 9 million households since 2005. It’s also the largest gain in any 10-year period on record.
Renting has increased among all age groups, household types and income groups. The demand is due in part to demographic, economic and lifestyle trends. All the while, homeownership remains at an all time low.
Source: Joint Center for Housing Studies of Harvard University
The report, America’s Rental Housing: Expanding Options for Diverse and Growing Demand, also shows that the 2010s are on track to be the strongest decade of renter growth ever recorded, with the addition of 1.05 million net new households per year, so far.
If you’re among the nation’s renters, there are many things to consider. The protection of your property is one of them, no matter if you’re in North Carolina or any other state. Many renters don’t realize that their landlord’s insurance policy does not cover their belongings. A renters insurance policy is an ideal way to protect yourself and your property. In addition to property and liability protection, renters insurance can cover additional living expenses.
Her are a few important factors from the Insurance Information Institute to consider when shopping around for the best policy.
Personal Property
Be sure your renters insurance policy offers enough protection to cover your personal belongings in the event of the unexpected, such as burglary or fire. Creating a home inventory list that includes the value of each item is an easy way to determine the value of your possessions. The Insurance Information Institute offers free Web-based home inventory software at www.knowyourstuff.org.
Actual cash value policies include a deduction for depreciation, while replacement cost coverage costs more, but will replace your belongings. Most renters insurance policies do not cover floods or earthquakes. Flood coverage is available from the National Flood Insurance Program and a few private companies. You can get earthquake insurance as a separate policy or have it added as an “endorsement” to your renters policy, depending on where you live.
If you have expensive jewelry, furs, sports or musical equipment, or collectibles, consider adding a floater, which is a separate policy that provides additional coverage for your valuables if they are lost or stolen.
Most renters polices include what is called off-premises coverage, meaning that belongings that are outside of your home are covered against the same disasters listed in your policy. For example, property stolen from your car or a hotel room while you’re traveling would be protected.
Liability Coverage
Under renters insurance, liability coverage can protect you against lawsuits for property damage or bodily injury caused by you, members of your family or your pets. The coverage pays court fees and awards, up to your policy limit. As with personal property, make sure the amount of liability coverage is sufficient for your needs.
No-fault medical coverage may also be a part of your liability coverage. Medical payments coverage allows someone who gets injured on your property to submit his or her medical bills directly to your insurance company, so the bills can be paid without resorting to a lawsuit.
If you need require additional liability protection, consider purchasing a personal umbrella liability policy, which would apply in the event you reach the limit on the underlying liability coverage provided by your renters or auto policy. It will also cover you for things such as libel and slander.
Living Expenses
If you are displaced from your rental home due to a disaster that you are insured for, a renters insurance policy can provide coverage for additional living expenses. Those expenses may include fees for hotels or temporary housing, meals and other expenses while repairs are made.
Discounts
Don’t forget to ask about discounts. Most companies offer incentives, but those can vary. Many companies offer discounts on renters insurance if you have another policy with them. You may be eligible for other discounts if you have a security system, use smoke detectors, are over age 55 or other factors.
For more on these important considerations, visit the Insurance Information Institute.
Our Johnson & Associates team is ready to help you shop around for the most optimal renters insurance coverage to meet your needs. We’re an independent agency with the flexibility to work with a variety of companies to find a rate that works best for you. Contact our team today at 336-226-8595 and visit us online at JohnsonandAssociates.com for a free quote.