Have you ever moved into a new home—rental or owning—and decided to forgo the insurance for living there? If so, you’re not alone. Only 57 percent of renters in the United States have it, which is actually up from 42 percent in 2018, according to a 2020 survey by the Insurance Information Institute.
You incur a lot of expenses when moving to a new location (packing materials, movers, furniture, appliances, and much more). Although renters and homeowners insurance isn’t required in any state, it is legal for your landlord or management company to require that you and other tenants in your apartment building or house have it. You’ll see the required terms in your lease agreement. However, when it’s not a requirement, many renters and homeowners opt out of it, believing it is an unnecessary expense, and something they will never need to use.
Here are three reasons you should always purchase a rental or homeowners’ policy, review it annually for policy coverage needed, and never have a lapse in coverage.
- It’s more affordable than you think
The cost of renters insurance varies by state, but the national average comes to just $18 a month, or $214 a year. If there’s damage to your rental from a fire or a break-in, your landlord is responsible only for repairs to the building, not for the cost of fixing or replacing your personal property.
Renters insurance will pay for your personal belongings up to the policy limit. It can also cover your possessions if loss or damage occurs outside your apartment, such as items stolen from your car or when traveling.
- It provides liability coverage
Let’s say someone is visiting your home and they slip and fall. Or UPS delivers a package to your residence and your dog bites the delivery drive. It’s likely you will be sued for their injuries and missed work. If your home is burglarized, you can make a claim for assets** stolen. Most liability coverage included in your rental insurance covers you up to $300,000.
- It covers temporary living expenses
If a disaster* occurs and there is damage to your home that forces you to move elsewhere temporarily, such as a hotel or another rental unit, your rental or homeowners’ policy coverage can pay for those additional living expenses including: pet boarding, delivery of rental furniture, housewares, appliances, and the cost of meals.
How ALE Solutions can help
When natural disasters or other unexpected events occur, ALE Solutions finds quality housing that fits each unique family’s needs. Our Relocation Specialists accommodate pets, disabilities, and other special needs to make sure every family member is comfortable.
ALE Solutions also orders and coordinates the delivery of furniture, housewares, and appliances to the temporary residence, so policyholders can focus on other tasks.
Temporary housing may include single-family homes, townhomes, apartments, mobile homes, furnished corporate suites, and hotel rooms. All can be provided furnished to suit your needs.
We offer:
- Two-way text communication with policyholders to make it easier for them to get the support they need. An ALE Solutions representative responds to messages 24/7/365.
- ALE Solutions manages the needed lease extensions based on repair duration and progress, and reminds policyholders of final move-out tasks.
- Special accommodations for pets and special needs so every family member is considered.
- Cost-effective hotel and temporary housing options close to the family’s home, so they can oversee repairs frequently and be close to their kids’ schools.
- MyALE HOME—The industry’s first app designed specifically for displaced homeowners allows policyholders to manage all aspects of their temporary housing stay from their mobile device.
- And much more!
Remember to be prepared before a disaster strikes. Make sure you have a record of your possessions, as well copies of receipts for high-cost items, in the cloud or a safe place outside your home. You can learn how to take a home inventory here.
It’s easy to shop for renters or homeowners’ insurance. You can compare quotes at online insurance brokers or you can work with an independent insurance agent who can get quotes from several carriers. Just make sure you purchase coverage! It will be one of the smartest investments you ever make.
* Homeowners and renters’ insurance do not cover damage caused by natural disasters, such as floods or earthquakes. If you’re at risk for these events, you’ll need to purchase separate policies for that coverage.
** If you have substantial assets, you should also consider umbrella liability coverage, which can give you a higher amount of protection than a renters policy.
