The ins and outs of renter’s insurance
NerdWallet: 67% of Americans think the housing market is the worst it has ever been
(InvestigateTV) — NerdWallet reports that 37% of current tenants plan to rent forever instead of purchasing a home.
One perk of renting is that the property owner is responsible for insuring the building, but that property owner’s insurance only goes so far. It won’t pay to replace personal belongings if a fire destroys the building, or if a thief breaks in.
Kim Palmer, a personal finance expert with NerdWallet, said renters’ insurance is a fairly cheap option.
“And what’s really surprising to people is how affordable it is. On average renter’s insurance costs only $12 a month and it covers all of your personal belongings,” Palmer said “So, if you experience, something like, something is stolen from you or damaged then the renter’s insurance actually covers the cost to replace your personal items.”
Palmer said one thing to note is that items of high value, like artwork, jewelry, or electronics, might need an additional rider on the insurance policy to make sure all of it is covered.
“In some cases, you can actually split the cost of renter’s insurance with your roommate. You do want to make sure you and your roommate are on the same page,” she said. “And that if one of you takes out the insurance policy and the other is paying half, that you have that conversation to make sure you are splitting it and it’s fairly divided.”
Palmer urged renters to read the policy closely and understand exceptions. In general, many policies don’t cover natural disasters like damage from a hurricane.
She suggested bundling a renter’s insurance policy with other policies to lower the overall cost even more.
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