If you’re a student at the University of Wisconsin-Eau Claire (UWEC) and renting your first house or apartment, you might feel overwhelmed by all the responsibilities that come with living on your own. One important thing you should know about is renters insurance. It might sound boring or unnecessary, but trust us—it’s a lifesaver in certain situations. Let’s break it down in a way that’s simple to understand.
What Is Renters Insurance?
Renters insurance is a type of insurance policy designed to protect people who rent their homes. Unlike homeowners insurance, which covers the building and the stuff inside, renters insurance only covers your belongings and gives you some protection if bad things happen.
Here’s an example: Imagine someone breaks into your apartment and steals your laptop, TV, or clothes. Renters insurance can help pay to replace those things.
It can also protect you if:
Your apartment catches fire, and your belongings are damaged.
Someone gets hurt in your apartment and sues you for their medical bills.
Your stuff is stolen while you’re traveling (yes, even if your backpack is stolen while you’re at the library or a coffee shop).
Why Do You Need Renters Insurance?
You might think, “I’m just a student. My stuff isn’t worth much.” But when you add up the cost of your laptop, phone, clothes, furniture, and everything else, it can be thousands of dollars! Could you afford to replace all of that if it was stolen or destroyed in a fire? Probably not. That’s where renters insurance comes in.
Here are a few reasons why renters insurance is a smart idea:
Accidents Happen.
Let’s say you accidentally leave a candle burning and it causes a small fire. You could be responsible for the damage. Renters insurance can help cover those costs.
It’s Affordable.
Most renters insurance policies cost between $10 and $20 per month. That’s less than what you might spend on coffee in a week!
Landlords Might Require It.
Some landlords won’t let you rent a place unless you have renters insurance.
Peace of Mind.
Knowing you’re covered if something goes wrong can help you sleep better at night. It’s one less thing to worry about.
What Does Renters Insurance Cover?
Most renters insurance policies cover three main things:
Personal Property.
This includes your belongings, like your laptop, clothes, books, and furniture. If these items are damaged or stolen, renters insurance can help pay to replace them.
Liability Protection.
If someone gets hurt in your apartment (like they trip over a rug and break their arm), renters insurance can help pay for their medical bills and protect you if they sue you.
Additional Living Expenses.
If your apartment becomes unlivable because of something like a fire or water damage, renters insurance can help pay for temporary housing, like staying in a hotel.
What Doesn’t Renters Insurance Cover?
While renters insurance covers a lot, there are some things it doesn’t cover:
Roommate’s Stuff: Your policy only covers your belongings, not your roommate’s.
Floods and Earthquakes: These are usually not included, but you can buy extra coverage if you’re worried about them.
Expensive Items: If you own something really valuable, like a $5,000 gaming setup or high-end jewelry, you might need extra coverage for those items.
How Does Renters Insurance Work?
You Buy a Policy.
First, you choose a renters insurance policy from a company that sells insurance. You’ll pay a small amount of money each month, called a premium.
Something Happens.
If your stuff is stolen or damaged, you file a claim with your insurance company. This is basically telling them what happened and what you lost.
You Get Paid.
After reviewing your claim, the insurance company will pay you money to help replace your stuff or cover the damage. This amount depends on the type of coverage you have.
Types of Coverage
When shopping for renters insurance, you’ll come across two main types of coverage:
Actual Cash Value (ACV):
This type of coverage pays you the current value of your items. For example, if your laptop is three years old, ACV will pay you what it’s worth now, not what you paid for it new.
Replacement Cost Coverage:
This type pays you what it would cost to buy a new version of your item. It’s usually a bit more expensive but can be worth it if you want full replacement value.
How to Choose a Renters Insurance Policy
Here are some tips for finding the right renters insurance for you:
Compare Companies.
Look at different insurance companies to see what they offer and how much they charge. Some popular options are State Farm, Geico, Progressive, and Lemonade.
Check the Coverage.
Make sure the policy covers what you need, like personal property, liability, and additional living expenses.
Think About Deductibles.
A deductible is the amount of money you have to pay out of pocket before your insurance kicks in. Policies with higher deductibles usually cost less each month but require you to pay more if something happens.
Ask About Discounts.
Some insurance companies offer discounts for students, bundling with other insurance (like car insurance), or having safety features in your apartment (like smoke detectors).
How to Get Renters Insurance
Getting renters insurance is easy and only takes a few steps:
Take Inventory of Your Stuff.
Make a list of everything you own and how much it’s worth. This will help you figure out how much coverage you need.
Get Quotes.
Contact a few insurance companies and ask for quotes. This will give you an idea of how much it will cost.
Pick a Policy.
Choose the policy that offers the best coverage for the best price.
Sign Up.
Once you’ve picked a policy, sign up and start paying your premium. That’s it!
Final Thoughts
Renters insurance might not seem like a big deal, but it’s one of the smartest things you can do as a student renting a house or apartment near UWEC. For just a few bucks a month, it can save you thousands of dollars and a lot of stress if something goes wrong.
Disclaimer
Hey there! Thanks for reading our stuff. We want you to know a few important things:
We're General Property Management LLC, right here in good old Eau Claire, WI. You can make an appointment to visit us. Our office is located at 703 5th Avenue #1, Eau Claire, WI 54703 or send written correspondence to General Property Management, LLC, P.O. Box 283, Eau Claire, WI 54702.
If you need to reach us, our email is contact@ec4rent.com and our phone number is 715-832-1200.
We try our best to give you good information, but we're not lawyers. If you have a serious legal problem, it's best to talk to a real attorney.
If you spot any mistakes in what we've written, please let us know! We'd love to fix it or take it down if needed.
We always welcome your comments and thoughts. Your feedback helps us do better!
Remember, when we all do our little part, the world is a better place.
