Renter's insurance a neglected necessity

By: Toni Merriss

Posted: 10/18/07

The trees are full of color, the sun is shining and a nice breeze goes by. You are in a great mood since your last class of the day got out early.

Walking to your car, thoughts race through your head of all the great things you can do with the extra time this has allowed you.

Then you realize something is wrong.

While you were in class, someone came and cleaned out everything in your car. Gone are your CDs, cell phone and textbooks-things you thought were safe sitting in your backseat.

Or, maybe you rushed out of your house this morning, unintentionally leaving the door unlocked, which calls to thieves like a loud blaring siren, just asking them to come rip you off.

Or maybe you remembered to lock it and the thieves paid it no mind.

All they care about is getting inside and stealing your stuff, no matter what.

Now, all your extra time will be spent waiting for the police and filling out paperwork.

Not to mention the time you are going to have to put in trying to explain to your teachers why you cannot do the homework they have assigned, or the money you will have to shell out to replace everything that has been stolen.

The situation could be remedied by renter's insurance.

Renter's insurance is like a safety net in the event your home, car or storage unit is ever broken into. Depending on the case, most landlords' insurance policies do not extend to their tenant's belongings, and usually in the case of a burglary, fire or flood, the tenant and the tenant alone is held responsible for damaged or destroyed belongings.

Some, but not all, insurance companies cover the loss of belongings in a vehicle. In most cases, if it is not included in the original policy, it can be added as an additional policy.

Almost every company that offers car insurance also offers renter's insurance and for some, if you purchase multiple policies, you can qualify for a discounted rate.

A few of the more common companies are: Geico, USAA, Allstate, Nationwide, Progressive, State Farm and Alfa insurance.

Some companies can be cheaper than others but many actually encourage potential clients to shop around before choosing one. Depending on the amount of coverage desired can depend on the monthly payment.

Many companies even have an online feature that can deliver approximate quote, though some require you to include personal information and authorize a credit check in order to do so.

For $27,000 worth of coverage, for instance, USAA charges about $18 per month, while Allstate charges $20 per month.

But for some, even the relatively inexpensive costs are not enough to convince them.

"I really don't have a lot of expensive stuff and I live in a pretty safe neighborhood, so I don't really see the point," Margaret Myers, a recent JSU graduate, explained. "Plus, it is another bill I don't want to have to pay."

As explained on multiple insurance Web sites, many people do not even realize the value of their belongings, so they have methods of helping you figure out what your property is worth.

According to their Web site, Allstate renter's insurance will cover the "current replacement cost of whatever you lost, minus depreciation," which means that your belongings will be covered not for what you paid for them, but for their actual value.

Sometimes the value decreases due to normal wear and tear on property, but that is to be expected.

Many people feel that renter's insurance is a good investment but forget about purchasing it, believing that they will never need it.

"My car was broken into last fall and I had a lot of stuff stolen. I have thought about getting insurance many times, but just have never gotten around to it," senior Josh Bomar, a geography major, said.

It seems that only when something bad happens, people are reminded about the benefits of purchasing insurance.

"I know I should buy it, but unfortunately, I will probably only get around to it if something worse happens," Bomar added.

The famous phrase, 'fool me once shame on you, fool me twice shame on me' comes to mind, or perhaps people just learn from their former mistakes.

"Last year, my house was broken into and over a thousand dollars of stuff was stolen. I didn't have insurance then but I definitely have it now," senior Jon Clements, an education major, said.

Clements, who recommends purchasing the insurance to anyone, feels prepared if he should have another break-in.

Feeling safe in your own home is not something that should have a price tag on it, but in this case, perhaps it is better safe than sorry.

Toni Merriss is the editor in chief of The Chanticleer. She can be reached at (256) 782-5701 or at chantyeditor@gmail.com.