HPM Insurance Blog

Why Every NH Tenant Needs Renters Insurance

Written by April Weismann | Jan 12, 2012 11:24:00 PM

 Renter's Insurance in New Hampshire

Maybe you think you never gave it a second thought. Maybe you can't afford it.  Maybe you think you don't own much worth insuring.  No matter what you think before a claim, you will definitely think differently after one.

Why Renters Insurance is Important to Consider for NH Tenants

What would you do if you only had the clothes on your back?  The scenario may sound extreme, but it happens more often than you think.  As experienced insurance agents who insure rental units throughout the state, it is not uncommon for us to see fire destroy a property.  It is an extremely stressful and unfortunate event, but even more so if tenants are left in the lurch if they do have their own renter's insurance. 

The difference between a rented apartment versus a home you own is that all your possessions are in a place that you do not entirely control. 

  • What if the resident beside you relies on space heaters powered by extension cords, a relatively common cause of fire.
  • What if a different neighbor smokes while on a home oxygen system?
  • What if your neighbor never clears the dryer filter when doing laundry?

You can be the most careful person, but still be impacted by the actions of others around you.

How much does a NH Renters Policy cost?

For around $200 a year ($16/month), a tenant can buy a basic apartment insurance policy in New Hampshire to cover their property.  Rates vary by the insurance company, but some primary factors considered in the rating include coverage amount, location of the property, and claims history.

You could also be entitled to a discount if you have auto and apartment insurance with the same insurance company, are a non-smoker, and/or pay your premium in full.  Be sure to ask your local insurance agent about these valuable credits.

How much coverage do I need?

Policies typically do not offer less than $20,000 in personal property coverage (aka all your stuff), so this may or may not be enough to fit your needs.  Before settling on an amount, think about everything you own, including:

  • living room: TV, stereo, computer, furniture, lamps, rugs, plants
  • kitchen: appliances, furniture, dishes, food, knives
  • bedroom: furniture, clothes, purses, shoes, phone
  • basement or garage: holiday decorations, golf clubs, tools, etc.

Unfortunately, there is no way your insurance agent can tell you how much coverage you need, given how much the cost of items can vary.  That said, air on the side of caution as you may not remember to increase your coverage even if you acquire additional property.   There is nothing wrong with asking for a few quote scenarios to find the coverage best suited for your needs.

What is Replacement Cost Coverage?

Replacement cost coverage is essential to have on a tenant policy.  Otherwise, your personal property will only be covered up to its actual cash value.  This means that you would need to shop at thrift stores or flea markets to replace your property vs. being able to go to a store similar to where you originally purchased the property.  Replacement coverage does cost a bit more, but well worth it.

What other coverage is on a NH Renter's policy?

An important part of a renter's policy is Additional Living Expenses (ALE).  This coverage may apply if your home is unlivable from an insured occurrence (like a fire).  It typically reimburses you for the difference between your additional and everyday living expenses, subject to a maximum limit.  Ensure you know this limit and feel it could adequately fit your needs.

Personal Liability coverage is also typically included, which covers you against lawsuits for bodily injury or property damage caused by you, your family members, or pets.  Personal liability coverage can also include the cost of your legal defense.

Please speak with your insurance professional for more specific information on the available coverages or limitations.

What else do you get in your New Hampshire Renters policy?  Peace of mind - which is not bad for less than $20/month!

How do you get a NH Renters Insurance Policy?

We would be more than happy to discuss New Hampshire Apartment Insurance with you in more detail and provide you with a quote.  Just do it.  You'll feel better that you did.