Renters Insurance: Why You Can’t Afford Not to Have It

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Home insurance, automobile insurance, life insurance – for most people these insurance policies are considered a necessity. Renters insurance should be too! Insurance policies literally save people from having to face any number of unexpected, and in most cases, life-altering events all their own.

Thanks to these policies, policyholders can expect to receive a check within a short few weeks (or even days) to replace their belongings, which may have been damaged due to some “named peril”. An upfront investment of less than $200 a year can really pay off should you ever need it.

Unfortunately, far too many renters are under the belief that they simply don’t need renters insurance, or that it’s too expensive. According to a 2014 Insurance Information Institute poll, only 37 percent of renters carry renter’s insurance, whereas 95 percent of homeowners carry homeowner’s insurance.

More troubling yet, is the fact that so many renters have little to no savings, to replace their belongings – let alone face liability charges should someone get hurt. Here we examine four of the most common misconceptions surrounding the life saving policy that is renter’s insurance.

Misconception #1: “I can’t afford it.”

Renters insurance is fairly inexpensive – for less than a dollar a day (depending on requested coverage limits) you can safely assume that all of your belongings are covered. In fact, according to the Insurance Information Institute, the average monthly cost of a renters insurance policy with $25,000 worth of property coverage and $100,000 worth of liability coverage, only costs $16.26/month.

Misconception #2: “My landlord will cover property damages.”

While your landlord may be sympathetic to a burglary, a fire, or the fire sprinklers breaking and flooding everything; destruction of your personal property is not typically covered by your landlord’s insurance. The burden of replacing your belongings after an unfortunate event falls squarely on your shoulders.

Misconception #3: “I don’t have nearly enough stuff to warrant the expense.”

If you don’t think you own enough to warrant this minuscule investment – just go around your residence, room by room, and do a little math. Don’t overlook the little things like dishes, utensils, towels and food. You’d be surprised at how much it costs to replace all the items that you’ve accumulated over the years. It’s also important to consider how much you personally value your belongings.

Misconception #4: “Renters insurance only covers my stuff.”

Think you’re not responsible for accidents – be it a flood or fire – that damages another tenant’s property? Think again! Luckily renters insurance can protect you from these situations by helping to cover those unexpected costs. At least up to your liability limits. It’s important to check with your insurance agent for more information and to update your limits as needed.

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