Insurance Insights
January 2-8, 2017
End of year reset: Is your renter’s insurance up to date?
By Allen Kerr
When you are a homeowner, it is likely that insurance is required for those with a mortgage. In many cases, however, renters still retain the option of buying coverage, but more and more landlords are requiring renter’s insurance nowadays. Because renters have many of the same risks as homeowners when it comes to protecting their possessions, I encourage Arkansans to pay the small price associated with renter’s insurance as it will cost more to replace items out of pocket.
The holiday season is when home burglaries begin to rise, and the new year finds many who are looking to move into a new apartment. Here are some common misconceptions when it comes to choosing whether to get renter’s insurance:
– It is too expensive.
The average renter’s insurance policy costs between $15 to $30 per month.
– Not having that many valuables, making insurance not worth the cost.
Renter’s policies can cover everything from electronics to home appliances. Even a minimal number of items can add up to thousands of dollars.
– Landlord already has insurance on my rental.
A landlord has insurance on the structural damage to the building, which doesn’t include the personal property of a tenant. Also, you could be held liable for damage you might cause due to an accidental fire or plumbing mishap.
Here are some useful questions a prospective consumer should ask their insurance agent when determining what renter’s insurance coverage fits their needs:
– How much coverage do I need?
Talk to your insurance agent or company about the property you want to protect, the property hazards you would like to be insured from, how you should determine the value of your items, and whether a roommate is covered.
– What kind of discounts are available?
Does a burglar alarm, deadbolt, fire extinguisher, or sprinkler system in your rental get you a discount on your premium?
– Are you covered in case of earthquake or flood?
A renter’s policy may not cover these natural disasters. Ask whether you may need additional coverage.
– Does my pet affect my insurance policy?
Certain breeds may require additional coverage.
– Is personal liability included?
A renter’s insurance policy covers your property and your personal legal responsibility (or liability) for injuries to others and/or their property while they are on your property.
It is my pleasure to continue to serve you as your Insurance Commissioner. For more information on the Arkansas Insurance Department, please visit http://insurance.arkansas.gov, follow us on Twitter at http://twitter.com/ARInsuranceDept and Facebook at http://www.facebook.com/ArkansasInsuranceDepartment.
Allen Kerr was appointed Arkansas Insurance Commissioner on Jan. 13, 2016, by Governor Asa Hutchinson.
