Did you turn the oven off when you were done in the kitchen? Did you remember to lock your front door when you left for work? What if that dead tree branch falls on your roof? There are a lot of what-ifs when you’re renting a home, and that’s just life! So, it’s best to be prepared with renters’ insurance.
What is renters’ insurance? I’m glad you asked! Renters’ insurance is when a renter makes monthly payments to an insurance company so if an unexpected event occurs, they will be financially reimbursed for covered losses. So, if a fire destroys your wardrobe, you can submit a claim to the company for money for a shopping spree, more or less. While many renters assume that their landlord’s insurance covers their possessions, this is a common misconception. Although JD McCormick Properties has always covered damages to our buildings, when it comes to safeguarding your personal belongings, you’re on your own. That’s why we insist on all renters purchasing their own renters’ insurance. Since it’s a valuable investment that often goes overlooked, let’s explore the key benefits of renters insurance and why it’s essential for anyone leasing a home or apartment.
WHY GET INSURANCE?
Protection for Personal Belongings:
One of the primary benefits of renters insurance is coverage for your personal belongings. Whether it’s furniture, electronics, clothing, or your heirloom Faberge egg, renters’ insurance helps replace or repair them in the event of covered perils such as fire, theft, vandalism, or natural disasters. This coverage may even extend beyond the physical walls of your rented space, providing a safety net for your possessions wherever you go.
With a large quantity of Campus housing, we know there can be some fun gatherings in our apartments. Renters insurance not only protects your belongings but also provides liability coverage. If someone is injured while on your rental property, you could be held legally responsible for their medical expenses and other damages. Renters insurance can help cover these costs, potentially saving you from financial strain and legal complications.
Additional Living Expenses (ALE) Coverage:
In the unfortunate event that your rented space becomes uninhabitable due to a covered peril, renters insurance can cover additional living expenses. This includes costs for temporary accommodation, meals, and other necessities while your home is being repaired or rebuilt. ALE coverage ensures that you can maintain a reasonable standard of living even in the face of unexpected disruptions.
Renters insurance is remarkably affordable compared to other types of insurance policies. The cost is often a fraction of what homeowners pay for their insurance, making it an accessible option for individuals and families on a budget. Considering the potential financial burden of replacing all your belongings or covering liability claims, the modest cost of renters insurance is a wise and cost-effective investment.
Peace of Mind:
Perhaps the most valuable benefit of renters insurance is the peace of mind it provides. Knowing that you are financially protected in the face of unforeseen events can reduce stress and anxiety. Whether it’s a break-in, hailstorm, or an object falling from the sky (it’s in there!), renters insurance offers a sense of security, allowing you to focus on enjoying your home rather than worrying about potential risks.
But don’t wait until disaster strikes! Be prepared and set up your insurance before you move in. Did you know that Wisconsin has one of the lowest nationwide renters insurance premium averages at about $10.83/month? But there are many options to choose from! Check out some recommended companies below. All offer various packages so you can choose the best price and coverage for your renting experience.
Luckily when applying for renters’ insurance, you won’t need to set up any showings of your apartment to assess your coverage. Some sites will have a quote for you within minutes of filling out a quick questionnaire, while others may require you to meet with a representative. But what will you need to know when you sign up? Below is a list of items that the insurance company may consider when deciding how much your monthly premium will cost you:
WHAT EFFECTS OUR PREMIUM?
Type of Home:
Apartment, house, condo, boat house, etc. JD McCormick Properties does not rent out boat homes, but we’re looking into it. The more units in your apartment building may increase your premium as well. We love our neighbors but who knows what they do behind closed doors.
Look around your home; how much does everything cost altogether? You may not need to price-check every sock but take a financial inventory of all your valuable items at a minimum. Whatever you would need to be replaced in the case of an emergency, include it!
Your financial stability and credit history:
Having a higher credit-based insurance score usually qualifies for a lower premium, but this will vary between companies.
We can almost guarantee a tsunami will not occur in Wisconsin, but never say never. The probability of natural disasters happening in your state can play a role in your coverage as well as what neighborhood you live in!
Usually, the lower the deductible you request, the higher your premium.
Deductible = What the renter pays out of pocket for a loss or repair that’s covered by your policy
Premium= Regular cost the renter pays the insurance company to keep their policy – usually monthly
If you or your family already have coverage for other types of insurance, there’s a chance you can bundle your renters’ insurance at a lower price! Never hurts to ask.
Have you asked insurance companies to pay you out in the past? Don’t be surprised if a little investigation occurs. If you’ve settled a lot of claims, you may be considered high risk. Premiums may increase up to 25% if you’ve ever settled a claim for theft or fire damage. So make sure you’re blowing out those candles and lockin’ up, people!
Having a pet may increase your premium as well. Although companies won’t cover your own property damage if caused by your pet, they may cover medical expenses if your pet injures someone. Breed restrictions may apply!
CAN ROOMMATES SHARE INSURANCE?
Do you have roommates? Although you’re sharing dish soap, the internet bill, and maybe a gallon of milk here and there, renters insurance doesn’t work the same way. Although it might bring the price down, some companies won’t even let you add people to your policy unless you’re related or married and here’s why.
It’s just not fair. When it comes to splitting the payments, how will you compensate for Luke’s brand new Nintendo Wii Supreme vs Brian’s thrifted Atari? The dividing will get messy, really quickly. If for whatever reason the Nintento and Atari are damaged at the same time, some companies have sub-limits on certain valuables. So if those two consoles exceed the electronics’ sublimit, then someone’s game won’t be covered. On the other hand, what if someone steals Luke’s Nintendo but not the Atari? Since both Luke and Brian are insured and pay together, they would both technically get money back. Does Luke pay Brian even though he still has his crappy Atari? But Brian isn’t completely unaffected because Luke’s claim still goes on his record. The more claims you have on record, the higher risk you are which will only increase your policies in the future. Not to mention, what if Brian doesn’t pay his portion? The provider could drop both Luke and Brian’s policies, which will result in more insurance issues in the future for both of them. That being said, you do you!
WHAT DO I DO AFTER I GET INSURANCE?
Do you have renters’ insurance? Hot diggity dog, look at you! We don’t need you to mail us any documents, save the trees. All you need to do is update your insurance information on your resident portal by following the directions below:
- Log In
- Go to the “Insurance” tab
- Input the Insurance Company, Policy Number, Policy Start and Expiration Date, and upload proof of insurance.
- Press “Submit Policy Information”
JD McCormick Properties does not need to be written into your policy, but you’re welcome to include us (information below).
JD McCormick Properties LLC
101 N Mills St, Madison, WI 53715
If you have any questions, we’re no insurance representative by any means, but let us know! Or contact your insurance provider directly. We’ll keep knocking on wood and keeping an eye on any preventative measures we can take. You keep double-checking those ovens, make a good habit of locking doors, and keep your eyes on the sky and dead branches (let us know about those). Life is going to happen either way.