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Do you NEED renter's insurance?
by Reliable Insurance Solutions
contributed by Reliable Insurance Solutions

Insurance is simply a promise to help you pay for your belongings in the case of a loss of property. In exchange for this promise, the customer pays a nominal fee known as a premium.

Even though renters do not own the building in which they live, in many cases they are underinsured when it comes to the value of belongings, as well as the liability of injury in the rented dwelling. A basic policy with $10,000 in replacement coverage can be as inexpensive as $150 per year. This is a small price to pay for the peace of mind that you can replace your belongings in the case of fire or other loss.

Many tenants in the greater Lafayette area are students, and may be covered, at least partially by their parents' homeowner's policy. However this coverage has a limit, and often times the value of belongings in the school residence exceeds that limit. An IIABA national survey showed that 80% of college students who rent housing for the school year may not have adequate coverage to protect their belongings when away from their primary residence. As we have seen with at least one alarming fire in student housing, it is very important to make sure that students have adequate insurance for their belongings

In many cases, tenants have belongings that are very valuable, such as jewelry, musical instruments, or even just a very nice TV. "Standard" homeowners' policies usually provide coverage for the "contents" of an apartment up to $10,000. So, people with rare or very valuable items should consider additional coverage to protect these sentimental treasures. But the best way to buy this type of coverage is from the home insurance company - an "endorsement," which is cheaper than a stand-alone policy. Many policies also set "sublimates" for contents insurance. For instance, most limit theft coverage on jewelry to $1,000 and firearms to $2,000. Those with more valuable jewelry, guns, or other belongings should consider additional protection.

This article was contributed by Reliable Insurance Solutions, an independent agency located at 1231 Cumberland Avenue in West Lafayette, IN and online at For more information, please call Kurt Watt at 765-464-0384.

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