Does Renters Insurance Cover Mold?

Does Renters Insurance Cover Mold Damage?

Having to replace all of your personal belongings because of something like a fire, mold or theft, would put a huge dent in your savings. Not to mention the fact that having to deal with such a tragic event would cause more stress than any one person should have to deal with. So when something unforeseen and tragic happens we immediately start asking questions like:

• Where will I find the money to replace these things?
• Do I have enough in my savings to cover these costs?
• Will I have to dip into my retirement savings?
• Will I have to borrow from family or friends?
• Will replacing these items max out my credit cards?
• Will I be able to replace everything I had or will I have to do without?

Homeowners are usually protected against such a disaster through their homeowner’s insurance policy. However, more Americans find themselves renting these days and it is estimated that over one half of all people who rent don’t carry any form of renter’s insurance to protect their belongings or protect them from liability.

Jeff Moree, a product director for Allstate Insurance explains that many people put off buying a renter’s insurance policy because they have misconceptions about this type of insurance. With this in mind, let’s take a moment to look at some of the common misconceptions about renting and insurance to make you more informed about this type of policy.

1. Renter’s insurance is a scam because my landlord’s insurance covers me.

Landlords have insurance, but their insurance covers the building and structure. Nothing in his or her insurance policy covers your personal property or protects you against a liability claim where you are found at fault.

2. I don’t have enough valuable stuff to warrant insurance.

One thing that you should do when purchasing a renter’s insurance policy is to conduct a home inventory of your stuff and apply a value to each item. If you were to do that right you may be surprised at how much it will cost to replace the television, computer, clothes, furniture, jewelry, etc.

3. My roommate has a policy so I am covered.

While there are some policies that will cover roommates and domestic partners many will not. Most renter’s insurance policies cover the insured’s property only.

4. I live in a safe neighborhood so I don’t need to worry.

The Department of Justice claims that renters are 79 percent more likely to be burglarized than homeowners. Even without that statistic to convince you, think about how often you see a home invasion that takes place in a gated community. It happens more often than we think.

5. Renter’s insurance costs too much.

Some insurance policies are really expensive but renter’s insurance is not one of them. Prices average between $160 to $350 per year for a policy and there are many ways you can negotiate a better price.
While a renter’s insurance policy may not give you total comfort in the event disaster strikes, it can certainly give you one less thing to worry about.