Are you one of the growing number of renters in Colorado? Have you already considered the price of buying a home in the booming Colorado market and decided to rent for now? You’re not alone, and in fact, many experts now say it’s a better investment to rent in cities like Denver vs. own right now. If this is the path you’ve chosen, there is still an important investment you can make. Today we’re talking about renters insurance and why absolutely everyone who rents should have it. Let’s break down the benefits of renters insurance in Colorado and discuss why you shouldn’t skip this important coverage.
Renters Insurance Basics
When you compare renters insurance to a more substantial policy in homeowners insurance, there are a few key differences. First, renters only protects your personal property. Since you don’t own the structure itself, you don’t have to worry about insuring it. Hopefully, your landlord has already done so with landlord insurance. This dramatically lowers the cost of renters insurance because while your valuables can still represent a large settlement, it often can’t compare to the price of rebuilding a home or apartment building. This is arguably the most important reason for buying renters insurance. It’s affordable and you stand to lose a lot more if your apartment is burglarized or damaged.
What Renters Protects
In addition to protecting your valuables or personal property, renters insurance comes with several surprising benefits. First, it protects your valuables, even outside your home. Have your suitcase swiped at the airport or tablet stolen from your car? Not to worry, renters covers it. There is also a limited amount of personal liability coverage included with renters. If you are sued, this coverage can step in and help you with legal costs. However, take note it does have a limit. If you believe you need more liability protection, take a look at umbrella insurance.
Renters will also cover displacement costs up to a certain amount. If your apartment building burns down, for example, you will receive funds for a temporary hotel stay. If a natural disaster or storm hits your apartment and damages your valuables, this is covered by a standard policy as well. The only exceptions are floods and earthquakes. If you live in a high-risk area for either of these disasters, speak with your insurance broker to discuss your options. Finally, one last surprising benefit comes in identity theft protection. A renters policy will help cover your costs as you navigate the tricky process of recovering from identity theft.
A Few Limitations To Consider
Your personal property is covered by a standard renters policy, but remember this coverage only extends to a certain amount. Just like a homeowners policy, if you possess items of extreme value like jewelry, antiques, or heirlooms, you should investigate getting a rider for these items. This will ensure they are covered if stolen or damaged. One other aspect you shouldn’t overlook is how replacement cost and actual cash value works. A renters policy with an actual cash value payout will cost less as far as premiums go. However, it will also pay out less in a claim since it is based on the current value of your belongings, not what it costs to replace them with new ones. A replacement cost policy costs more, but it will also pay out more since it assesses what it will cost today to replace key valuables.
Don’t Forget You Can Bundle Auto And Renters
Bundling different coverages together is a pro move no insurance customer should overlook. Insurance companies reward you for brand loyalty, and the more products you purchase from them, the deeper the potential discounts. When it comes to renters insurance in Colorado, you can bundle it with your auto policy (or other policies like umbrella) to maximize your savings. This only makes your renters insurance more affordable, and it is another reason why you should never skip this important coverage. Chances are you have an auto policy anyway, so make it work in your favor!
Renters Insurance In Colorado
We close this article with an important fact – your landlord’s insurance does not cover anything of yours, including your valuables. Landlord insurance only protects their assets, namely their building and any liability they may have related to owning the property. If your dog bites a jogger or you are a victim of a break-in, your landlord cannot help with these incidents. It’s up to you to protect yourself, and renters insurance is an easy and affordable way to do this. As we mentioned above, you can even bundle it with your auto policy to save more. Contact Square State Insurance today to learn more about how a renters insurance policy will keep you sleeping soundly in your new Colorado apartment.