After spending an exorbitant amount of money for a tiny apartment in New York City, the last thing you want to think about is shelling out even more money on something like renter’s insurance. If you rent an apartment in New York City, you should know that the owner of your building doesn’t have insurance to cover your personal items in case of fire, water, or other damages. Their insurance covers the building itself, not the contents of your apartment. That’s why you should purchase some type of renter’s insurance to assure that you are completely covered. Some New York landlords even require that their tenants purchase renter’s insurance as a stipulation of their lease. This requirement isn’t always enforced, however, leaving many tenants in a position to forget about this important coverage completely.
If you own expensive electronics, jewelry, clothing, furs or collectibles, you probably need renter’s insurance. Research has shown that the average renter owns about $30,000 in personal property. This represents a substantial replacement cost should you experience a traumatic event such as a fire or water damage caused by something like an upstairs neighbor with leaky plumbing. Renter’s insurance will assure that you can replace your belongings if they are damaged or stolen, giving you the peace of mind that you are completely protected. Renter’s insurance also includes liability protection, which means you will have legal representation and compensation for injury or accident lawsuits. Renter’s insurance may also include reimbursed living expenses for temporary housing should you need it.
Coverage is inexpensive. In many cases as little as $15-$20 per month will give you all of the coverage you need, especially if you are young and renting a small apartment with few furnishings or items of value. Most policies in New York cost about $250 per year and can be paid in monthly installments. You can get two types of coverage: Actual cash value and replacement cost. These types of policies are exactly what they sound like. For the first you get the value of what your stuff is worth now with depreciation subtracted and for the second you get the actual replacement cost of each item. In most cases people want replacement cost coverage, but it’s more expensive and many people will instead opt for cash value to save money on their monthly premiums.
To save money, make sure you only pay for the coverage you need. Determine the value of the contents of your apartment and how much money it would cost to replace only the items that are worth replacing. Another way to cut down on costs is through multi-policy discounts. If you are already paying for auto, life, or other insurance, your agent may be able to get you a deal on renter’s insurance by bundling all of your policies under one company. Another way to cut down your monthly premium is to pay for your entire year of coverage all at once to eliminate any monthly installment fees or choose a policy with a higher deductible. The higher the deductible, the lower the monthly premium, and vice-versa. Just keep in mind that you are on the hook for the cost of the higher deductible before the insurance company reimbursement kicks in.
For the cost of a modest lunch in the city of New York, you can get a month’s worth of renter’s insurance that will cover your personal belongings plus give you injury lawsuit protection. It could be the least expensive item in your monthly budget with the highest potential benefit.
To find out more about New York Renters Insurance rates, please call our office or visit Premier Insurance Services of New York City for further information.
1. I don’t need renters insurance because my landlord/building owner is covered. The fact is that the landlords policy will cover only the landlord’s structural damage to the building (or house) itself, not the personal items of the tenants. The tenant is responsible for his/her own insurance if they want coverage.