As the insurance experts for California renters, we’re often asked, “Is renters insurance a good idea in 2018?” With many contributing factors including low cost and high return for an insurance policy, as well as simple peace of mind, renters insurance is not just a good idea, but a great one.
Renters Insurance is a Great Idea in 2018
Renters insurance protects you in a wide variety of ways that you may not have considered or even been aware of. It’s a requirement landlords often put into a lease. If you have kids, you’re responsible for their friends from time to time, like if they come over to your house after school, for example. The liability exposure in that alone makes renters insurance a good idea.
To find out exactly why it’s a good idea, we’ll have to dig a little deeper into Bakersfield Renters Insurance.
People Today Love to Sue
Let’s face it– nowadays the natural response to any damage or perceived slight is to threaten a lawsuit– which will probably not change in 2018. Not all threats come to fruition, of course, but it’s a scary possibility. What would you do if someone told you they were going to sue you? Would you be prepared? In today’s litigious society, many people don’t have a plan in place for that eventuality.
The fact that people nowadays are so quick to jump into the courtroom makes renters insurance a good idea for a couple of reasons. First of all, a policy can pay for bodily injury or property damage that you may have caused through your own negligence – the most likely reason for someone to sue you. In addition, renters insurance pays for your defense against claims of negligence. The best part of defense coverage is that it doesn’t matter whether the suit or claim has any merit–coverage applies even if the suit is frivolous, ridiculous, or couldn’t possibly survive a motion for summary judgment to dismiss. Without defense, even a frivolous lawsuit is a serious risk.
There Are More Fires And Other Losses Than Ever Before
As the population of America grows, so does the number of losses that people suffer. Housing is built in ever-closer spaces, which means that your neighbor’s loss could become your loss as well. This makes renters insurance a good idea because you don’t know how responsible your neighbor is (or isn’t!).
Frequently we hear stories of entire buildings or entire apartment complexes being gutted by fire. Once a fire starts to spread, there may be no stopping it. Even if the fire could be stopped, you’ll need to stay elsewhere for a few days at the minimum while the building is verified to be structurally sound. Your policy would pay for loss of use, which means that the hotel and other costs associated with staying elsewhere would be covered.
More Landlords Will Require Renters Insurance In 2018 Than Ever Before
If you want to live in a professionally managed apartment community in California, you’ll need renters insurance. It’s a standard requirement of just about every property management company, and for good reason. Losses caused by tenants are a significant risk to the management company and property owner.
Liability coverage makes renters insurance a good idea from the property manager’s standpoint. For example, if you were to cause a loss, the property manager and their insurance company could go after your renters insurance policy instead of trying to recoup funds directly from you. This would turn the whole matter into a quiet little dispute between some insurance companies instead of, say, the property management company suing you personally for damages. That would be a bad experience for everyone, and an event that could ruin your life and your future prospects. Renters insurance can greatly protect you from that risk.
It Costs More To Replace Your Property In 2018 Than It Used To
Prices are rising faster than wages, and have been for many years. That makes renters insurance a good idea in 2018 because it’s more expensive to replace your belongings than it used to be. Everything now costs more than it did when you bought it (thanks, inflation). In the case of an accident, your renters insurance policy generally would pay replacement cost, allowing you to buy the property at what it costs currently.
If you have to rebuild your life after a fire or a theft, you’ll want and need to quickly replace many lost items. Having a renters insurance policy makes that possible. You’ll submit a list of your damaged or lost items, and the claim is paid. Then you’ll go buy new property. It’s generally that easy.
The alternative is to scrimp and save for years just to get back to where you were yesterday. The entire point of Bakersfield Renters Insurance is to return you to the financial condition you were in before the loss so that you don’t have to waste years getting back there.
The Economy Hasn’t Fully Recovered Yet, Making It Even Harder To Recover After A Loss
Because the economy still hasn’t fully recovered from The Great Recession, many people and families are in a much different position than they were just a few years ago. People who once had significant savings have had to dip into them to cover unexpected expenses after a loss, making it harder to live day to day. Those savings aren’t being replenished and are then unavailable if you should find yourself needing to put your life back together after experiencing a covered loss.
All of this makes renters insurance not just a good idea, but a great idea in 2018 and beyond.
The national average price of renters insurance is just $187.00, according to the III. That works out to as little as fifteen dollars per month. The vast majority of families can budget renters insurance easily at those prices.
Additionally, it's important to note that renters are at a significantly higher risk of experiencing loss than homeowners. Renters occupy roughly one third of total housing stock in the country, and yet they are fully fifty percent more likely to experience theft than homeowners, according to the Bureau of Justice Statistics.
It only costs a few dollars a month to protect your family, and this cheap renters insurance is a great way to mitigate the additional risks that come with being a renter.
Effective Coverage offers the nation's only completely mobile platform to quote and purchase renters insurance right from your phone or tablet in just one minute. Get an online renters insurance quote today and protect your family.
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