An Empty-nester’s road to downsizing: From Home Insurance to Renters Insurance

renters-insuranceWe are empty-nesters, now what? As we wait for our new, but much smaller home to be built we have moved into a small two-bedroom apartment. Talk about downsizing, from 3,000 square feet to 1,000 square feet is a lot of space to lose but so worth it. Clean up is easy and there is a maintenance crew to fix anything and everything that breaks. Apartment living is like a small slice of heaven.

That being said, we have not lived in an apartment in almost 25 years; some things have changed some not so much. Having very close neighbors is not so bad this time around as they are super quiet. I can only hope they feel the same about us. No complaints so far (keeping my fingers crossed). It could be that our “distinctive Apartment” is very well insulated or the configuration of the apartment lends to less common walls. Whatever, the case we are enjoying apartment living for now.

Having divested ourselves of home insurance which we have grown accustom to paying year over year. We have accepted the significant increases due to damage in our area caused by various super storms, albeit grudgingly. Even though my home did not sustain any damage those living around us did and as a result of this, we saw a significant hike in our rates. Never the less, I am glad to be covered by insurance because one never knows when disaster may strike.

While looking for our new apartment we had to re-educate ourselves about renters insurance. I knew that it covered your personal possessions for loss or damage but I had no idea about liability coverage. I have to admit I have never purchased any type of renters insurance in the past. I was very lucky nothing ever happened. I never experienced theft, vandalism, fire and smoke damage, or water damage. These are the perils covered by personal renters insurance.

Per the 2014 Insurance Information Institute poll conducted by ORC International it found that 95% of homeowners had homeowners insurance. Among renters, only 37% said they had renters insurance. Also, the average premium for homeowners is $729, it is only $195 for renters insurance.

After moving to South Carolina we learned that to rent our apartment $100,000 worth of renters personal liability protection is required. Renters personal liability insurance provides financial protection against liability claims and lawsuits brought by others for accidental bodily injury or damage to property:

  • While in your apartment
  • Caused by your personal activities, including most sports
  • Caused by your children or pets

The cost of this insurance is about $16/month. We purchased our personal renters and personal liability insurance, paid our monthly rent and a small security deposit of $200 and happily moved in.

Stay tuned to see how life happens and plans can be derailed.