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Four Reasons to Consider Renters Insurance

If you rent in Hawaii, you may have never thought about getting renters insurance for your property and liability exposures. Today, we'd like to change that.


Renting in Hawaii isn’t cheap. Can I afford to get insurance?

Hawaii isn't exactly known for low rental prices. Quite the opposite: median rent in Hawaii is generally higher than the U.S. median, and to make things worse, the cost of rent here has climbed by at least 10 percent since 2012. With one in three households earning less than the median income for the area, a lot of Hawaii residents are feeling the pinch.

When money is tight, people look for ways to eliminate the inessential. That's normal. But if that's you, be advised: Renters insurance is one thing that should definitely not end up on your toss list. Here are four reasons why:

1. Your landlord's policy doesn't cover you.

Your landlord's insurance provides coverage so the structure you live in could be rebuilt if needed. Your own liability and belongings are not included. That's rather a horrible surprise for those who assume that their landlord's policy would cover them. Too many people wait until a catastrophe has happened to find out the truth. If a loss occurred and your personal property was ruined, you'd be starting from scratch.If your budget is tight, renters insurance is actually more important, not less. It covers your belongings in the event of fire, theft or other covered causes of loss, helping to protect your savings as well as your future paychecks.

2. Your belongings are more valuable than you think.

You might be surprised to learn the real value of your belongings. Try making a list of everything you own – including electronics, digital media, kitchen appliances, furniture, jewelry, clothes and so on – and do some online price-surfing to find out what it would cost to replace them at typical retail stores. Right away, you'll see how much renters insurance is worth.

3. Renters insurance provides liability coverage.

Liability coverage is about financial protection. Without it, you could be seriously exposed. For example, if you accidentally break an expensive vase while visiting a friend's house, you may be held responsible for the damages caused. Or if your dog bites someone during your morning walk around the block, you could be sued. With personal liability coverage, the insurance company defends you if you are sued and pays damages to the injured person up to the limit of liability.

4. It's surprisingly affordable.

If you think renters insurance is going to be too expensive, think again. The cost will vary depending on your location and type of dwelling, the coverage and deductible you choose and the estimated value of your belongings, but typically, an annual premium only costs a few hundred dollars per year. That may boil down to a dollar a day, possibly less than the cost of a monthly cable subscription. Really the question isn't, "Why would you get renters insurance?" but, "Why on earth wouldn't you?"

The bottom line: Renters insurance is a basic necessity. Especially as we head into an El Niño year, we encourage you to find a policy that’s right for you. That way, if a crisis occurs, you can move right through it and get back to your regular life as smoothly as possible. For a complimentary quote, contact a FICOH agent here.