The last 12 months in Florida have been a year of significant growth. In fact, this area has seen one of the most significant spikes in population that have ever occurred in the state, and residents are feeling the crunch. The state is becoming more crowded, making rental properties harder to find. Those who are fortunate enough to secure a rental property are faced with rising rents amid the nationwide inflation. No wonder renters are looking for ways to save money and often ask the question – do I have to obtain renter’s insurance?
The answer is typically answered by the apartment complexes themselves, as most require renter’s insurance as a prerequisite of the lease. But you still may be unsure of the benefits of obtaining this insurance. Here are some of the misconceptions about Florida renters insurance.
Several common misconceptions about renters insurance might dissuade tenants from purchasing the policy they need. Let’s clear up some of the fallacies about this type of coverage.
Myth #1: The landlord’s insurance covers my personal property.
Many renters assume that their landlord or rental management company’s insurance will cover and protect their personal property. Typically, however, a landlord’s insurance policy only covers the physical building or unit you reside in. Tenants are individually responsible for providing insurance coverage for their personal property, any liability, and expenses related to a potential loss of use.
Myth #2: My belongings aren’t valuable enough to justify renters insurance coverage.
It may be a mistake if a tenant does not purchase a renters insurance policy because they don’t have many possessions of value. Nearly everyone’s personal belongings are valued higher than the estimate, but more importantly, they aren’t considering the value provided by liability and loss of use coverage. According to Allstate, the average value of belongings is about $30,000 for a typical two-room apartment. When you add up the total value of your possessions, you may be surprised at how they are really worth. However, even if a tenant has no personal property of their own, the other features available through the policy make renters insurance worth the effort.
Myth #3: I don’t need liability coverage.
No matter how cautious and careful a renter may be, the protection provided by liability insurance should not be ignored. Too many tenants assume liability protection is unnecessary because they rarely entertain, or they don’t see the possibility of a guest injuring themselves in their apartment as unlikely. Unfortunately, accidents do occur — whether your dog bites a visiting friend or a family. It is always prudent to have the coverage you need for protection, so you don’t end up paying for a settlement out of your own pocket.
Myth #4: Renters’ insurance is too costly.
While homeowners insurance can be expensive – as is earthquake, hurricane, and flood insurance – renters insurance is quite affordable. The average annual renter’s premium in Florida is $187, well below the average homeowner’s insurance policy. Premiums will vary, but renters can purchase a standard renters insurance policy with $30,000 in personal property coverage and at least $100,000 in liability protection for $25 per month or less.
If you need more information on renter’s insurance or need information on any type of insurance (automobile, home, or life), call Anderson & Associates Insurance Group.
