Market News • February 8, 2018

Idaho Real Estate Market Update

by Windermere Economics

ECONOMIC OVERVIEW

Idaho added 14,700 new jobs in 2017, representing a growth rate of 2.1%. Although this is still a reasonable figure—and well above the total U.S. rate— this rate continues a cooling off we’ve seen over the past few quarters, which is to be expected as the state has essentially reached full employment.

In December, the state unemployment rate was 2.9%. With the labor force continuing to expand, it is clear there are still jobs out there to be filled. I continue to anticipate that Idaho will outperform the U.S. in growth through 2018.

HOME SALES ACTIVITY

Fourth quarter home sales rose by 9.1% compared to the same period last year, with a total of 5,787 homes changing hands.
Sales rose the fastest in Shoshone County, which had a 22% increase over the fourth quarter of 2016. There were also noticeable increases in Kootenai, Payette, Blaine, and Bonner Counties.
Year-over-year sales dropped in Valley County, but given that this is a remarkably small market, I am not concerned.
The number of available homes for sale rose over the fourth quarter of 2016, which is an encouraging sign.

HOME PRICES

The average home price in the region rose 14% year-over-year to $306,938.
Valley County led the market with the strongest annual price growth. Homes there sold for 34% more than a year ago.
All counties in this report saw home prices increase compared to the fourth quarter of 2016. All but one county saw double-digit gains.
Home prices are still trending well above the long-term average as demand continues to exceed supply. Although we did see some growth in listings, it remains a seller’s market.

DAYS ON MARKET

The average number of days it took to sell a home in the region dropped 20 days compared to the prior year.
It took an average of 122 days to sell a home in Northern Idaho and 83 days in the southern part of the state.
Homes in all three Northern Idaho counties took less time to sell than they did in the same quarter of 2016, and all but one of the southern counties in this report saw sales take less time to close that in the fourth quarter of 2016.
Homes sold the fastest in Ada and Canyon counties, where it took an average of 39 and 42 days, respectively.

CONCLUSIONS

The speedometer reflects the state of the region’s housing market using housing inventory, price gains, home sales, interest rates, and larger economic factors. Consumer confidence in the housing market seems to have returned, causing the markets in this report to perform well overall, and for home prices to continue trending upward. As mentioned in my last report, the market remains out of balance, with more buyers than sellers. Even with the modest increase in listings seen in the quarter, the market still heavily favors sellers. Unless we see a major increase in the number of homes for sale in early spring, the market will continue to see above-average home price growth.

Matthew Gardner is the Chief Economist for Windermere Real Estate, specializing in residential market analysis, commercial/industrial market analysis, financial analysis, and land use and regional economics. He is the former Principal of Gardner Economics, and has more than 30 years of professional experience both in the U.S. and U.K.

Market News • February 7, 2018

Eastern Washington Real Estate Market Update

by Windermere Economics

ECONOMIC OVERVIEW

The Washington State economy added 104,600 new jobs over the past 12 months. This impressive growth rate of 3.1% is well above the national rate of 1.4%. Interestingly, the slowdown we experienced through most of the second half of the year reversed in the fall, and we actually saw more robust employment growth. The counties contained in this report added 13,597 new jobs over the past 12 months, representing a respectable employment growth of 2.8%. It should be noted that the rate of growth continues to drop, but this is to be expected as the area approaches full employment.

HOME SALES ACTIVITY

In aggregate, home sales throughout Eastern Washington performed well in the fourth quarter, with sales rising 6.3% compared to the same quarter of 2016. Year-over-year, home sales rose in three markets and decreased in three. In total, there were 3,469 home sales in the fourth quarter.
Sales rose at the fastest rate in Walla Walla County, which increased 15.2% over a year ago. That said, the market is relatively small, so a slight shift in sales can dramatically change the numbers.
Sales fell in half of the counties in this report, mainly as a function of low inventory levels—a problem across the whole of Washington State.
The number of homes for sale was down 9.3% from last year. Inventory clearly remains an issue and this will continue to push home prices higher.

HOME PRICES

Year-over-year, the average home price in the region rose 9.5% to $241,667. Price growth has been moderating across the region, but several counties continue to see well-above-average appreciation.
Limited inventory continues to drive prices higher. This is unlikely to change as we move into the winter months.
All of the counties in this report saw prices rise compared to the final quarter of 2016. Benton County led the way again with an increase of 14.8%.
The takeaway here is that home-price growth continues at above-average rates and, as long as mortgage rates remain favorable to would-be buyers, prices will continue to rise.

DAYS ON MARKET

The average number of days it took to sell a home dropped by two days compared to the fourth quarter of 2016.
The average time it took to sell a home in the region was 61 days.
Every county except Grant saw the time it took to sell a home drop from the same quarter in 2016.
Spokane County had the biggest drop in days on market. The time it took to sell a home there dropped by seven days compared to the fourth quarter of 2016.

CONCLUSIONS

This speedometer reflects the state of the region’s housing market using housing inventory, price gains, home sales, interest rates, and larger economic factors. Given the drop in listings, rising pending and closed sales, and climbing home prices, I have nudged the needle just a little more in favor of sellers. We are all hoping for a jump in new listings in the first quarter, which would help would-be buyers. For now, however, the market clearly favors sellers.

Market News • February 6, 2018

Oregon and Southwest Washington Real Estate Market Update

by Windermere Economics

ECONOMIC OVERVIEW

The State of Oregon added 30,600 new jobs over the past 12 months, representing an annual growth rate of 1.7%. Although job growth continues to slow, solid gains were still seen in the Construction (+7,400), Education & Health Services (+6,400), and Leisure & Hospitality (+5,200) sectors.

Oregon’s unemployment rate was in record low territory for all of 2017, diving to 3.6% in May of 2017, before drifting up to 4.2% by November. It is clear that the annual average unemployment rate for the whole of 2017 will be the lowest on record.

HOME SALES ACTIVITY

Fourth quarter home sales dropped by a very modest 1.5% compared to the same period last year, with a total of 15,314 homes sold.
Sales rose the fastest in Tillamook County, which saw a 76.2% increase over the fourth quarter of 2016. There were also noticeable sales increases in Cowlitz, Lincoln, Coos, Clatsop, and Crook Counties. Home sales fell the most in Jefferson, Hood River, Skamania, and Yamhill Counties.
Year-over-year sales rose in 12 counties, remained static in one, and dropped in the other 13.
Although sales were a mixed bag, I still contend that any drop in sales was due to low levels of available inventory rather than declining demand.

HOME PRICES

The average home price in the region rose 7% year-over-year to $363,110. This is down 1.4% from the third quarter of 2017.
Tillamook County led the market with the strongest annual price growth. Homes there sold for 22.5% more than a year ago.
All counties other than Klickitat, Clatsop, and Lincoln experienced rising prices when compared to the fourth quarter of 2016. The majority of counties saw significant, double-digit increases.
This slowdown in price growth is likely due to buyers feeling priced out of the market.

DAYS ON MARKET

The average number of days it took to sell a home in the region dropped by 7 days from the fourth quarter of 2016, but was up 13 days from the third quarter of this year.
The average time it took to sell a home in the region last quarter was 80 days.
Eight counties saw the length of time it took to sell a home rise compared to a year ago, but I still do not see this as troublesome. Listings are scarce during the winter months, and it’s not unusual for buyers to wait until spring in anticipation of more choices in the market.
Once again, homes sold the fastest in Washington and Multnomah Counties, where it took an average of 33 and 34 days, respectively, for homes to sell.

CONCLUSIONS

The speedometer reflects the state of the region’s housing market using housing inventory, price gains, home sales, interest rates, and larger economic factors. Housing markets throughout Oregon continue to benefit greatly from the healthy regional economy.

The Oregon/Southwest Washington housing market remains fairly strong and, given that inventory levels are unlikely to increase as we head toward the traditionally busier spring market, sellers remain firmly in the driver’s seat. That said, price growth and home sales have slowed, so I am leaving the needle in the same position as last quarter.

Market News • February 5, 2018

Utah Real Estate Market Update

by Windermere Economics

ECONOMIC OVERVIEW

The State of Utah added 41,200 non-agricultural jobs over the past 12 months, representing a solid growth rate of 2.8%. Although the area has experienced a slowing in employment gains, the economy is running at full employment, which limits how many new jobs can be created. In last quarter’s report, I forecasted that the pace of employment growth was likely to kick back up during the last quarter of the year, but any substantial gains have, so far, failed to materialize; average monthly job growth is essentially static. That said, we are still waiting for December data and I believe that the final yearly number will be higher.

In November, the unemployment rate was 3.2%, matching the fourth quarter of 2016. With the unemployment rate leveling around 3%, it is unsurprising to see wages rising. The annual rate of pay was up 2.8% over this time last year.

HOME SALES ACTIVITY

There were 8,529 home sales during the last quarter of 2017, a drop of 1.8% from the same period in 2016.
Similar to third quarter, sales rose in just two of the counties analyzed in this report: small Morgan County saw sales grow 50% year-over-year—it’s worth noting though that this equates to an increase of only eight units—and there were moderate sales increases in Utah County. Sales fell marginally in Salt Lake and Weber Counties, and a more substantial drop was seen in Wasatch and Davis Counties.
Home sales continue to be held back by very low levels of available inventory. Listing activity continues to trend at well below historic averages, with the total number of homes for sale in the fourth quarter down 33.7% from a year ago.
The takeaway from this report is that unless we see a drastic increase in listings, sales growth will continue to remain at below-average levels.

HOME PRICES

Given the considerable competition for the few homes for sale in the fourth quarter, prices continue to rise at fairly rapid rates. Prices in the region were up 11.6% yearover-year to an average of $342,507.
Appreciation was strongest in Wasatch County, where home prices rose by 22%.
Substantial price growth was also seen in Summit, Salt Lake, Utah, and Weber Counties, where prices rose by doubledigit percentage points.
The imbalance between supply and demand persists, which means home prices continue to appreciate at aboveaverage rates. This is likely to continue for the foreseeable future as inventory levels are unlikely to rise sufficiently to meet demand.

DAYS ON MARKET

The average number of days it took to sell a home rose by one day when compared to the fourth quarter of 2016.
It took an average of one month to sell a home in Davis County. Sales were also brisk in Weber, Salt Lake, and Utah Counties.
During the fourth quarter, it took an average of 50 days to sell a home in the region.
I believe that the length of time it takes to sell a house will drop back down as we enter the traditionally active spring market. That said, sales will be limited by inventory constraints.

CONCLUSIONS

This speedometer reflects the state of the region’s housing market using housing inventory, price gains, home sales, interest rates, and larger economic factors. For the fourth quarter of 2017, I left the needle at the same point as third quarter. Supply issues persist and this continues to create competition for well-priced and well-located homes. The increase we’re seeing in the amount of time it takes to sell a home may suggest that the market is either getting weary of all the competition or buyers are delaying their purchase until there are more homes to choose from.

Market News • February 1, 2018

Colorado Real Estate Market Update

by Windermere Economics

ECONOMIC OVERVIEW

Colorado added 45,300 non-agricultural jobs over the past 12 months, a growth rate of 1.7%. Although that is a respectable number, employment growth has been trending lower in 2017 as the state reaches full employment. Within the metropolitan market areas included in this report, there was annual employment growth in all areas other than Grand Junction, where employment was modestly lower. There was solid growth in Greeley and Fort Collins, where annual job growth was measured at 4% and 2.7%, respectively.

In November, the unemployment rate in the state was a remarkably low 2.9%, down from 3% a year ago. The lowest reported unemployment rates were seen in Fort Collins and Boulder, where only 2.5% of the labor force was actively looking for work. The highest unemployment rate (3.7%) was in Grand Junction.

The state economy has been performing very well, which is why the wage growth over the past year has averaged a very solid 3.3%. I expect the labor market to remain tight and this will lead to wages rising at above-average rates through 2018.

HOME SALES ACTIVITY

In the fourth quarter of 2017, there were 14,534 home sales—a drop of 2.0% compared to a year ago.
Sales again rose the fastest in Boulder County, which saw sales grow 17.9% versus the third quarter of 2016. There were also reasonable increases in Weld and Larimer Counties. Sales fell in all other counties contained within this report because there is such a shortage of available homes for sale.
As I discussed in my third quarter report, sales slowed due to the lack of homes for sale. The average number of homes for sale in the markets in this report is down by 8.2% from the fourth quarter of 2016.
The takeaway is that sales growth has moderated due to the lack of homes for sale.

HOME PRICES

With continued competition for the limited number of available homes, prices continued their upward trend. Average prices were up 9.8% year-over-year to a regional average of $431,403, which was slightly higher than the third quarter of 2017.
There was slower appreciation in home values in Boulder County, but the trend is still positive.
Appreciation was strongest in Weld County, which saw prices rise 14.3%. There were also solid gains in almost all other counties considered in this report.
The ongoing imbalance between supply and demand persists, which means we can expect home prices to continue appreciating at above-average rates for the foreseeable future.

DAYS ON MARKET

The average number of days it took to sell a home rose by two days when compared to the fourth quarter of 2016.
Homes in all but three counties contained in this report took less than a month to sell. Adams County continues to stand out, where it took an average of just 21 days for homes to sell.
It took an average of 29 days to sell a home last quarter. This is up nine days over the third quarter of 2017.
Housing demand remains strong in Colorado and this will continue with well-positioned, well-priced homes continuing to sell very quickly.

CONCLUSIONS

This speedometer reflects the state of the region’s housing market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

For the fourth quarter of 2017, I have chosen to leave the needle where it was in the previous quarter. Listings remain scarce, but this did not deter buyers who are still active in the market. As much as I want to see more balance between supply and demand, I believe the market will remain supply-constrained as we move toward the spring, which will continue to heavily favor sellers.

Design • Selling • January 31, 2018

Affordable Tips To Up Your Home’s Curb Appeal

by Windermere Staff

You’ll never have a second chance at a first impression, so let’s make it count! When it comes to upping your home’s curb appeal, there are plenty of small changes you can make that have a big impact. And best of all, you don’t need to call in the pros or spend a fortune to get beautiful results. Below are some helpful and affordable tips.

A Well-Maintained Yard

Mowing: The first step to a well-manicured lawn is to mow it regularly. The experts recommending mowing high because mowing it too short can damage the grass and allow weeds to set root.

Weeds: To prevent weeds like crabgrass use a pre-emergent herbicide in early spring. These herbicides manage the weeds by stopping the seeds from sprouting in your lawn. Broadleaf weeds like dandelions can be stopped by applying granular weed control products.

Feeding: Lawns consume mostly nitrogen, so look for mixes of fast and slow release fertilizers; they will feed your lawn over time while keeping it lush and green.

Watering: Nighttime watering can result in long spans of moisture on the blades, potentially exposing your grass to disease. Consider watering your lawn in the morning – the sun helps dry out the blades throughout the day.

Flowers: You can quickly and affordably dress up your yard with colorful pre-made flower pots and containers. When placing your flower pots and containers remember that asymmetrical arrangements and staggering plants will provided the liveliest setting.

Dress up the Front Door and Porch

Paint: A fresh coat of paint in a pop color can give your home a well-deserved facelift. If you are hesitant to add a bright color to your front door, check out our article Energize Your Home This Winter With Bright Hues .

Replace Old Hardware: Clean off any dirty spots around the door knob, and use a metal polish on the fixtures. Change out house numbers for an updated feel, put up a wall-mounted mailbox, or add an overhead light fixture. Keep in mind that well thought through elements, instead of mix-and-match pieces, will add the most curb appeal.

Create Perfect Symmetry: Symmetry is one of the simplest design techniques to master and is the most pleasing to the eye. Maintain symmetry by flanking your front door with two sidelights (just make sure that your hardware matches); find two urn planters or a unique visual detail to put on either side of your door.

Market News • January 31, 2018

Southern California Real Estate Market Update

by Windermere Economics

ECONOMIC OVERVIEW

The counties covered by this report—Los Angeles, San Diego, San Bernardino, Orange, and Riverside—added 130,300 new jobs between November 2016 and November 2017. As a result, the unemployment rate dropped from 4.7% to 3.8%. Employment growth in Southern California picked up a bit as we moved through the final quarter of last year, and I expect this to continue as we move into 2018.

HOME SALES ACTIVITY

There were 45,342 home sales in the final quarter of 2017. This was 2.4% lower than the same period in 2016.
The number of homes for sale remains well below the levels seen a year ago (-18.1%), and down 14.8% from the third quarter of 2017. However, I attribute this to seasonality.
Home sales were a mixed bag, with ongoing increases in San Bernardino County, but a drop in sales in all other counties contained in this report. This mirrors a trend seen over the past three quarters that can clearly be attributed to woefully low levels of inventory.
There was an average of 29,623 active listings in the fourth quarter, well below what is needed for a balanced market.

HOME PRICES

Year-over-year, average prices in the region rose by 6.5%, but are only 0.1% higher than the third quarter of 2017.
Home prices in the region keep rising, but the pace of growth is slowing. This is not a concern for now because it is likely due to an ongoing lack of affordability. Home prices cannot continue to appreciate at the rates they have been in recent years, so I expect to see an ongoing slowdown in appreciation. That said, I believe prices will continue to rise for the foreseeable future.
Orange County had the greatest annual appreciation in home values (+8.5%) but there were solid price increases across the rest of the region.
Pending home sales rose by 4.1% compared to a year ago, which is an indication that closings in the first quarter of 2018 are likely to be fairly robust. Demand for homes in the coming year will remain positive but, with limited inventory in the markets, demand is likely to outstrip supply.

DAYS ON MARKET

The average time it took to sell a home in the region was 43 days. This is a drop of 11 days compared to the fourth quarter of 2016, but five days longer than the third quarter of 2017.
The biggest drop in the number of days it took to sell a home was in Orange County, where it took 18 fewer days to sell a home than in the same period last year.
Homes in San Diego County continue to sell at a faster rate than other markets in the region. In the fourth quarter, it took an average of just 29 days to sell a home, which is five fewer days than a year ago.
All five counties saw a drop in the amount of time it took to sell a home between the fourth quarter of 2016 and the fourth quarter of 2017.

CONCLUSIONS

The speedometer reflects the state of the region’s housing market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

Southern California continues to add new households and job formation remains positive, which intensifies the demand for housing. Mortgage rates remain very favorable and low inventory is driving prices higher as demand exceeds supply. The number of homes for sale in the region is still well below the levels needed for a balanced market. Given all of these factors, I have moved the needle a little more in favor of sellers.

Market News • January 30, 2018

Nevada Real Estate Market Update

by Windermere Economics

ECONOMIC OVERVIEW

Employment in the Las Vegas metropolitan area continues to moderate but, with a year-over-year employment growth rate of 2.7%, the region is still performing well above the national average of 1.4%. Over the past 12 months, the area has added 25,500 new jobs. This has led to a respectable unemployment rate of 5.3%. This is the same rate as a year ago, but that should not be any cause for concern, as we have seen a fairly large increase in the labor force, which can slow the drop in the unemployment rate.

With the region approaching full employment, I expect wages to continue rising at aboveaverage rates. The latest data shows average weekly earnings up 4.7% year-over-year. This should allow further home price increases as we move into the new year.

HOME SALES ACTIVITY

A total of 8,156 homes sold in the last quarter of 2017—a 2.2% increase over the same period a year ago. With an increase of 4.7% in pending sales, I expect to see an impressive number of closings in the first quarter of 2018.
Home sales slowed relative to the final quarter of 2016 in four market areas. I am not concerned, though, as this was primarily due to a lack of available inventory.
Sales rose substantially in the Aliante and Whitney sub-markets, where transactions rose by 19.7% and 13.3%, respectively. Several other sub-markets saw positive sales growth, but at more modest levels due to inventory constraints.
Inventory levels remain remarkably low, with 33.6% fewer homes for sale than in the same period in 2016. As much as I would like to see a bump in listings in early 2018, I think it’s unlikely. The market will remain out of balance for the foreseeable future, with demand outstripping supply.

HOME PRICES

Home prices in the area have risen by 15.9% year-over-year to an average of $277,155.
There were double-digit gains in twelve neighborhoods, and only three sub-markets saw prices rise by less than 10%.
Prices rose in all sub-markets compared to the fourth quarter of 2016. The strongest growth was in the Queens Ridge submarket, where prices were up by a very impressive 30.8%.
I maintain my belief that above-average price growth in the greater Las Vegas market will continue through 2018. Robust job growth—in concert with limited inventory and favorable borrowing rates—continues to drive demand for housing.

DAYS ON MARKET

The average time it took to sell a home in the region dropped by 14 days compared to the fourth quarter of 2016.
It took an average of just 34 days to sell a home in the fourth quarter.
The length of time it took to sell a home dropped in all Las Vegas sub-markets compared to a year ago.
The greatest drop in days-on-market was in the Whitney sub-market, which dropped by 26 days when compared to the same quarter in 2016. Homes in this area sold in 27 days on average.

CONCLUSIONS

The speedometer reflects the state of the region’s housing market using housinginventory, price gains, home sales, interest rates, and larger economic factors. Employment growth in Clark County, although slowing modestly, is still very positive. This, when combined with low inventory levels and competitive mortgage rates, will push home prices higher. Given these factors, I have moved the speedometer a little further in favor of sellers.

Market News • January 29, 2018

Western Washington Real Estate Market Update

by Windermere Economics

ECONOMIC OVERVIEW

Growth continues to be broad-based, with expansion in all major job sectors other than aerospace due to a slowdown at Boeing.

With job creation, the state unemployment rate stands at 4.5%, essentially indicating that the state is close to full employment. Additionally, all counties contained within this report show unemployment rates below where they were a year ago.

I expect continued economic expansion in Washington State in 2018; however, we are likely to see a modest slowdown, which is to be expected at this stage in the business cycle.

HOME SALES ACTIVITY

There were 22,325 home sales during the final quarter of 2017. This is an increase of 3.7% over the same period in 2016.
Jefferson County saw sales rise the fastest relative to fourth quarter of 2016, with an impressive increase of 22.8%. Six other counties saw double-digit gains in sales. A lack of listings impacted King and Skagit Counties, where sales fell.
Housing inventory was down by 16.2% when compared to the fourth quarter of 2016, and down by 17.3% from last quarter. This isn’t terribly surprising since we typically see a slowdown as we enter the winter months. Pending home sales rose by 4.1% over the third quarter of 2017, suggesting that closings in the first quarter of 2018 should be robust.
The takeaway from this data is that listings remain at very low levels and, unfortunately, I don’t expect to see substantial increases in 2018. The region is likely to remain somewhat starved for inventory for the foreseeable future.

HOME PRICES

Because of low inventory in the fall of 2017, price growth was well above long-term averages across Western Washington. Year-over-year, average prices rose 12% to $466,726.
Economic vitality in the region is leading to a demand for housing that far exceeds supply. Given the relative lack of newly constructed homes—something that is unlikely to change any time soon—there will continue to be pressure on the resale market. This means home prices will rise at above-average rates in 2018.
Compared to the same period a year ago, price growth was most pronounced in Lewis County, where home prices were 18.8% higher than a year ago. Eleven additional counties experienced double-digit price growth as well.
Mortgage rates in the fourth quarter rose very modestly, but remained below the four percent barrier. Although I anticipate rates will rise in 2018, the pace will be modest. My current forecast predicts an average 30-year rate of 4.4% in 2018—still remarkably low when compared to historic averages.

DAYS ON MARKET

The average number of days it took to sell a home in the fourth quarter dropped by eight days, compared to the same quarter of 2016.
King County continues to be the tightest market in Western Washington, with homes taking an average of 21 days to sell. Every county in the region saw the length of time it took to sell a home either drop or remain static relative to the same period a year ago.
Last quarter, it took an average of 50 days to sell a home. This is down from 58 days in the fourth quarter of 2016, but up by 7 days from the third quarter of 2017.
As mentioned earlier in this report, I expect inventory levels to rise modestly, which should lead to an increase in the average time it takes to sell a house. That said, with homes selling in less than two months on average, the market is nowhere near balanced.

CONCLUSIONS

This speedometer reflects the state of the region’s housing market using housing inventory, price gains, home sales, interest rates, and larger economic factors. For the fourth quarter of 2017, I have left the needle at the same point as third quarter. Price growth remains robust even as sales activity slowed. 2018 is setting itself up to be another very good year for housing.

More • January 22, 2018

Five Reasons You Need Renters Insurance

by Guest Author

It might be tempting as a renter to think that you don’t need an insurance policy if you’re renting an apartment or home, but not having one could cost you more than you think. A 2016 poll by the Insurance Information Institute found that only 41 percent of renters have their own renters insurance policy. Here are a few reasons why it’s important to have your own insurance policy as a renter.

To cover your belongings.

In the event that a fire, break-in or other incident occurs that results in the damage or loss of your personal belongings, your landlord’s insurance policy will not pay for their replacement. Consider how much it could cost to replace your clothes, furniture, electronics and other household items. In order to make sure you have the coverage to replace your lost items, it’s critical to have your own renters insurance policy.

To cover people who come to your residence.

If someone were to visit your home and become injured, you could be held liable for their injury and any related medical bills and costs. Having renters insurance helps protect you against this liability, and can help pay for legal expenses in addition to medical bills.

To cover things that might be stolen outside of your home.

Your renters insurance may actually help cover you in incidents that happen away from your home. For example, if some of your personal belongings are stolen from your vehicle, it is unlikely that your auto insurance will cover the theft. However, it’s much more likely that your renters insurance will cover it.

Your landlord might require it.

Agreeing to purchase a rental policy might be a requirement of your landlord. But even if it isn’t, having renter insurance may help your rental application get accepted and it helps show your landlord that you’re a responsible renter.

It won’t break the bank.

Rental policies are usually pretty inexpensive. According to the National Association of Insurance Commissioners, the average rental insurance policy costs $190 per year. That amounts to less than $16 per month.

If you’re wondering whether or not you need a rental insurance policy, talk to your insurance representative or reach out to the professionals at Long & Foster Insurance. They can help guide you to the right policy for your needs so you get the right amount of coverage at the right price for your budget.

This blog was reposted with the permission of Long & Foster.