Three Questions Every Connecticut Renter Should Answer
Norwich, Conn: Fire in Norwich apartment building leaves 150 people without homes. Residents only had minutes to leave…
Meriden, Conn: Two families were left without their apartments as a fire tore through the home. The second floor was ablaze when firefighters arrived…
Danbury, Conn: Forty-one people were left homeless and have been helped with food, shelter and clothing by the American Red Cross. They lost everything including prescription drugs…
While the stories above capture the sensational aspects of a devastating loss the reality of these situations occur daily to Connecticut families. The cause of loss could be fire, water damage, smoke damage or a theft. In far too many cases people are left without the money to replace damaged items or to pay for a new place to live while their rental unit is repaired.
In these situations there are two types of people: Connecticut families who have prepared for a potential catastrophe and those families who were not ready. Those who have prepared simply submit a claim to their insurance carrier so that their possessions can be restored. Those who have not prepared have to scrape together money to rebuild their lives. In many cases they must look to charity or other family members to help out.
This Renters Report encourages people to acknowledge that a significant loss could happen. A loss could be caused by your neighbor who has a fire or it could be caused by water that soaks all your possessions. Whatever the cause the simple steps proposed in this report will make Connecticut families better prepared and protected.
1. What do I have to lose?
If you are convinced that there is a risk of a loss occurring, then read on.
When we ask if people have renters insurance they often say “I don’t have anything that is worth much”. We then encourage them to walk around their apartment, room to room, to create a list of the items they own along with a rough estimate of the value to replace that item today. Several days later when we talk again the story has changed to, “I had no idea I had so much stuff in this little apartment”. The list of furniture, pots, pans, clothes, towels, sheets and electronics really adds up.
This quick inventory is important to create for two reasons:
- It’s a record of the items that must be replaced if there is a loss
- Allows people to set a reasonable value for insurance replacement purposes so they can acquire the proper coverage if that is the course of action they take.
2. What do you get for your money?
The main areas of coverage in basic renters insurance are contents, additional living expense, and family liability. Below are definitions of each and exactly what it protects you for:
- Contents: A quick definition is the belongings you moved into your apartment, like clothing, furniture and electronics. The contents are covered for fire, theft, windstorm, hail, vandalism, water damage, and smoke damage among other perils. Be sure to request replacement value coverage so that the company replaces your used possessions with new items.
- Additional Living Expense: This coverage pays additional expenses you would incur to maintain your standard of living if you were forced out of the apartment because of a covered loss. That means that if you have to live in a hotel for a few days or weeks the insurance company would pay those charges.
- Family Liability: If someone in your apartment trips and hurts themselves you may be sued. Family Liability coverage will pay the damages you are legally obligated to pay if you are found negligent. The landlord may also be sued, however, the landlord’s own insurance would take care of his portion.
- Other Coverage: There are other coverage options available for people who rent like identity theft, jewelry, silverware, sports equipment etc. These can be added to a policy for an extra charge upon request. It is a good idea to discuss these options when reviewing a coverage quote.
3. Is it Worth it?
Consider this: the cost of protecting and average family who rents in Connecticut is about $146.00. The small cost of protection is better than the big risk of losing all your belongings and then having to replace it all.
Take action now. The cost of protecting your belongings is very reasonable. When you contact us mention our Renters Report and we will give you a free gift card.
Our goal at The Haas Agency is to make sure people are educated and making informed decisions regarding their renters protection planning. Give us a call, e-mail.