The importance of renter's insurance
Posted at: 05/09/2013 5:49 PM
By: Amanda Ciavarri | WHEC.com
It's been almost a week since that fire and the people affected are still trying to put the pieces back together. If you lost everything, would you know how to start over? How to replace everything?
This brings up the importance of renter's insurance. Some of those families in Palmyra did not have it.
In fact, according to a study by Rent.com, 60% of renters do not have renter's insurance. And younger people are even less likely to have it, the study says 72% of people under 25 do not have a policy.
Some of the people in Palmyra didn't have renter's insurance, so now the cost of rebuilding their live is all on them.
We don't know the cause of the fire yet, but that is one of the reasons insurance agents say renter's insurance is so important.
Ken Golub, Allstate Insurance, said, “Sometimes if there is some fault involved by another tenant or something and there is a lawsuit, that person might not have the assets to pay you cash for what you've acquired. When you take the time and look at how much you've collected over the years, your clothes, sterios, televisions, many of our customers are shocked at how much it would cost to replace.”
So how much would the average person need in coverage? If you were a college student, insurance agents say you would probably need a policy that covers $10,000 to $15,000. If you are a younger couple, maybe with a small baby, just starting out, you probably need a $25,000 to $50,000 policy.
According to a recent study, many people feel they can't afford the monthly payment that comes along with the policy, but when News10NBC spoke with an insurance agent with Allstate Thursday, he says that is not true.
Golub said, “It is very,very affordable a lot of times. It is about the cost of a cup of a Starbucks a week, you could be fully covered for all your stuff.”
News10NBC spoke to a number of insurance companies in our area. Many of them say if you have auto insurance with them, they offer a discount on that if you get renter's insurance that would almost cover the whole cost of the renter's insurance.
To help the families involved in the fire in Palmyra, please contact the Palmyra American Legion, call (315) 597-2412 or you can drop off donations at 132 Cuyler St. Palymra, NY 14522.