Many consumers mistakenly assume that renters insurance is costly. Gotham Brokerage President Jeff Schneider recently spoke with Curbed, an online resource for all things home, from interior design and architecture to renovations and real estate, about the benefits of renters insurance. Jeff was the industry expert source quoted in a Curbed handbook covering all the ins and outs of renters insurance. Another misconception is that renters insurance is not a necessity because a landlord’s policy will cover any damages to a tenant’s property should something happen to their apartment building. Wrong again. If anything damages your personal property and you don’t have renters insurance, you’ve lost it for good.
Jeff says that most people don’t realize renters insurance is inexpensive, starting as low as $125 a year, and widely available. Essentially, what you pay for is a policy based on the value of your belongings. The higher your property value, the higher your renters insurance, and vice versa.
Standard coverage levels for property damage range from $25,000 to $50,000, although they can go higher. The policy will also come with a deductible, what you’ll pay out-of-pocket before the insurance coverage kicks in. Your policy will offer deductibles of a specific amount, typically from $500 to $2,000. The larger the deductible, the lower the premium charged.
Before you secure a policy, you need to take stock of all your stuff. The easiest way to determine the value of your personal possessions is by creating a home inventory. Track your furniture, clothing, books, electronics, appliances, kitchen utensils, pretty much everything you own that didn’t come with the apartment and mark its estimated value. Jeff says the best way to to do this is by taking photos of your stuff and keeping track of credit card statements.
Once you’ve taken stock of your personal inventory, you’ll decide what kind of policy you want. There are two kinds of coverage: replacement cost coverage or actual cash value coverage. Actual cash value considers what your items are worth including depreciation, not what you bought them for. A replacement cost policy will pay the cost of replacing your possessions without accounting for depreciation. Jeff advises the replacement cost policy, despite a slightly higher price uptick of about 10 percent. It’s considered worth the extra expense as the value of most items tends to depreciate quickly. That MacBook you bought two years ago is now worth significantly less than what you paid for it.
To read the article in its entirety, visit Curbed online.
If you’re looking for an insurance company that simplifies the process of shopping around for apartment insurance and really understands the unique insurance needs of the New York apartment renter, look no further than Gotham Brokerage. Gotham has over fifty years of experience working with New Yorkers. In as little as twenty minutes, they can set you up with the right insurance policy for your needs, and it probably costs a lot less than you think it does.
Get in touch with Gotham today for a free quote.