Did you know that of all the homeowner’s and renter’s insurance claims that are filed, about 98% of them are related to property damage? In all likelihood, your home holds some of your most valuable possessions. While we like to think our homes are safe, the fact is that we are all vulnerable to damage from fires, flooding from burst pipes and even theft.

No matter what type of home you live in, having adequate insurance goes a long way in protecting yourself financially. However, the type of dwelling you live in determines what type of coverage you need. Homeowner’s insurance seems pretty obvious; if you own a single-family home, you need homeowner’s insurance. However, if that is not you, deciding between condo insurance and renter’s insurance can be a little more challenging.

What Does Condo Insurance Cover?

If you own your condo, then you need condo insurance. There are two types of condo insurance, including the association master’s policy, which is for the entire complex and paid for in part by each resident, and your personal policy.

The master policy covers the building’s structure, including common areas, elevators and anything in the condo that is part of the unit. Your personal condo insurance policy covers everything left out of the master policy, such as personal belongings and liability coverage.

What Does Renters Insurance Cover?

If you rent your home, then in all likelihood, renter’s insurance is the type of policy you need. Because you are not responsible for the building itself, a renter’s policy only covers your belongings, not the structure of the home.

♦ Renter’s insurance covers your personal property. If your property is damaged due to a covered peril such as a fire or theft, then you are compensated for your loss up to your policy limits. There are a variety of risks and events covered by renters insurance, including:

♦ The cost to repair or replace your belongings, including your furniture, clothing, and electronics up to your policy limits

♦ Liability coverage if you accidentally damage someone else’s property or if someone gets hurt by you/your family members that reside in your home

♦ Additional living expenses if your home becomes uninhabitable, including hotel bills and additional food expenses

Why You Should Have Renters Insurance

Renters insurance is typically very affordable – sometimes as low as $20 per month – but it can save you from financial devastation in the event of a covered loss/claim, like a fire and other reasons. In some cases, landlords and property managers require that their tenants carry this coverage. However, even when it’s not required, its affordability makes carrying this coverage a no-brainer.

Making Renters Insurance Affordable

Get the Right Coverage

To make sure that you have the right level of coverage while ensuring that you’re not over-insured, it’s important to consider what it would cost to replace all of your belongings. The average policy covers around $25,000 for personal property and $100,000 for liability. These policies can be uniquely adjusted to your needs. You may need more coverage or less, depending on personal factors like the value of your belongings and your exposure to risk.

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Increase Your Deductible

Your renters insurance deductible is the amount of money that you pay toward covered damages before your coverage kicks in. For example, if you have a deductible of $1,000 and you file a claim on $15,000 of damage, you’ll pay $1,000 out of pocket and your renters insurance will cover the rest. For any type of insurance, including renters insurance, it’s generally best to carry as high a deductible as you can afford. The average deductible here in Nevada is around $500, but each policy is adjustable, so check with your policy for details or speak with your agent. Because those with higher deductibles are statistically less likely to file a claim, the insurance company charges a lower premium.

Find Out If You Qualify for Discounts

There are some factors outside of your control that can increase how much you pay for renters insurance, including where you live, how old the building is and where the nearest fire station is. However, there are some ways to lower your monthly premium. Most renters insurance companies offer discounts for having multiple policies or having some things in your home, such as smoke and fire detectors, fire extinguishers, sprinkler systems or home security systems. When speaking with an insurance agent, make sure to ask about discounts available and which ones are you may qualify for.