5 Reasons You Need Renters Insurance

Add up the cost of your flat-screen TV, iPhone, and laptop. Walk into the bedroom and look at the closet. A market survey asked women how much clothing they estimated they had in their closets. About 23 percent of the participants said their clothing had a value of between $2,500 and $4,999. A quarter stated they owned between $1,000 and $2,499 in clothing.

Consider every dish, bath towel, blanket, and other daily use items in the home. The cost to replace everything, even for newly independent renters, would likely cost thousands. Take a quick inventory and consider not what the item cost to buy or its current value, but what it would cost to replace.

The benefit of the policy can also extend beyond the walls of the rental unit. Some policies include the property of the policyholder kept elsewhere, like in a storage unit. If a break-in or natural disaster takes place and causes loss of property from a storage area, the policyholder can submit a claim to recover their losses.

Some people have healthy savings accounts, but that does not include everyone in the United States. The Federal Reserve released a report that stated that nearly 40 percent of American adults could not cover a $400 emergency. To handle an unexpected problem of this amount would require them to sell something, borrow money, or go without.

Some people do have enough money in the bank to replace everything they currently own. The question they need to ask is if that is how they want to spend their money. No one wants to spend money rebuying what they have already worked hard to obtain.

A suitcase stolen from an airport or a laptop taken while at work could become a serious financial concern for anyone. How do you replace the property lost? Statistically, people are unlikely to recover their stolen property. In 2018, Americans recovered only 5.2 percent of stolen office equipment, 7.9 percent of stolen clothing, and 3.9 percent of stolen jewelry.

Renters insurance policies can cover the losses through off-premises coverage. It can also cover the expense of stolen bicycles, a common crime in many areas of the country. The reassurance of coverage can prevent the frustration of theft from ruining a vacation or causing a financial emergency.

Many tenants lack alternative places to call home. Their family members may live far away, and their friends may lack the space for them at their homes or apartments. A fire or flood could make an apartment uninhabitable. Renters insurance policies can also include coverage for the cost of temporary housing.

Borrowed property or items left behind by a friend could also disappear during a burglary or become destroyed in a fire. No one wants to upset someone they care about due to the inability to replace what was lost. Renters insurance can cover those lost belongings so you can replace the item. 

Every renter should meet with an agent to discuss their needs and their budget. The variety of options makes it possible for nearly everyone to find the perfect solution for them. At the Illinois Insurance Center, we offer free, no-obligation quotes for all the policies, home, auto, renters, life. Visit our website or call today for a quote or more information. You can call us in Chicago at (773) 831-3692 or in the surrounding suburbs at (708) 776-2260.