It's estimated that nearly 70% of all renters don't have an Arizona Renters Insurance policy to cover their stuff. Renters are also 50% more likely to have a theft loss than non-renters. Why are renters so underinsured even though they experience theft losses at rates significantly higher than non-renters? I answered this question in this post linked here. Lack of understanding and education about how Arizona Renters Insurance can benefit the renter is one of the primary factors mentioned in that post.
Today, I'm going to share with you the 4 Essential Keys to Understanding Arizona Renters Insurance so that you can unlock your insurance protection and be better covered for the losses you might face as a renter in Arizona.
There are 4 Key Coverages to Arizona Renters Insurance that protect you, the renter. These coverages are not provided by anyone else especially your landlord, thus it's up to you to protect yourself against loss.
- Key 1 - Personal Property Coverage. - Your Renters Insurance covers all of the stuff that you own. Chances are good the value of your stuff, the cost to replace these items, is more than you're thinking. And stop thinking of just your tv and stereo because your clothes, shoes, linens, and other miscellaneous items probably cost way more than your tv and stereo. Most renters easily have $15,000-$25,000 worth of worldly possessions or more if you really sat down and did an accurate inventory.
- Key 2 - Additional Living Expenses. - If there is a fire or severe windstorm that does damage to your building to the point you can't live there, you don't want to let the Red Cross put you up at the local gymnasium; on a cot; with 50 of your closest neighbors and kids do you? I didn't think so! Renters Insurance provides Additional Living Expenses if a covered peril, such as a fire, makes it impossible for you to live in your place until repairs are made. This coverage alone is worth the cost of the policy. There is nothing wrong with the Red Cross, they do fantastic work. But, you should be in control of where you stay after a loss, not the Red Cross.
- Key 3 - Medical Payments to Others. - You're out walking your dog and it gets in the way of a runner, tripping and causing bodily injury. This is a Medical Payments to Others claim. Someone at your party slips on melted ice on the kitchen floor and breaks their arm, again, this would be a Medical Payments to Others claim. They happen all the time and your landlord isn't responsible for these types of claims.
- Key 4 - Personal Liability. - We are a very litigious society. Lawsuits happen every day and many are frivolous in nature, but that doesn't stop them from happening. This valuable coverage provides coverage if you're sued for damages because of bodily injury or property damage caused by an occurrence for which coverage applies. Even if the suit is frivolous, your renters insurance liability coverage would provide a defense on your behalf saving you thousands of dollars in attorney's fees just to defend yourself.
For the cost of one night out at a restaurant each month, you can have this valuable coverage to protect yourself as a Renter in Arizona. The average, ANNUAL cost of an Arizona Renters Insurance policy is generally $180-$300. Spending $15-$25 monthly for all the coverage above, and more, is well worth it.
As with any policy, there are always limitations, conditions, and exclusions. Read your policy and ask questions of your agent to make sure you have a good understanding of your renters insurance policy. If you don't have an agent, we're here to help. Our Mission every month is to help 50 families obtain the right insurance for their needs and save money on their auto insurance, home insurance, and renters insurance. We want to help you! Do me a favor and share this post with every renter you know. Thanks!
Author Richard Morris
Richard Morris, an independent insurance agent in Gilbert, Arizona and Chandler, Arizona, has been serving and helping Arizona families and businesses with all their insurance needs for over 24 years. Visit his website at http://www.southwestpremierinsuranceagency.com to see all the ways he can help you with your insurance needs or call the office at (480) 336-2707 or toll free at (888) 907-9349. Connect with Rich on Google+ and Twitter.