Do You Really Need Renters Insurance?
Insurance is everywhere. Some insurance you’re required to have, like car insurance. Health insurance is a now a must in the United States. House insurance is included in many mortgage payments, but what about renters insurance? Since you don’t own the property, is it something you really need?
It’s definitely worth your time to look into a renters insurance policy. Here’s why.
Your landlord won’t cover damages
It makes sense to think that if there’s any damage to your apartment or the things inside it that your landlord would be responsible. Especially if the damages aren’t your fault! However, this isn’t the case. Landlords are covered for their property, which includes the structure and appliances inside it. Other items in the apartment aren’t included.
If there’s a fire in the next unit that damages property in your unit, if the refrigerator breaks down and spoils hundreds of dollars’ worth of food, or if there’s a leak or flood that damages your furniture, you’re responsible for taking care of the damages. That is, unless you have renters insurance.
Your belongings are worth more than you think
It’s easy to believe that you simply don’t have enough stuff to warrant an insurance policy. After all, that kind of coverage is for people with expensive jewelry, artwork, and fancy furniture, right?
The fact is, your stuff is worth a lot more than you think. Just imagine if there’s a fire in your apartment. Just in the living room alone you would have to look into replacing the couch, television, any gaming consoles, rugs, tables, and more. All that stuff adds up to thousands of dollars that you may not have lying around in case of an emergency.
You could be held responsible for the damages you accidentally cause
Your landlord has ensured that he is covered when it comes to his property, but what if you’re the cause of the damage and other tenants are involved? Unfortunately, you’ll likely be held responsible.
For example, if you accidentally leave the bathtub running and the water seeps into the floor and damages items in the apartment below, you may have to replace those items.
What if someone enters your apartment and becomes injured due to an accident? This situation is more common than you may think, especially if you have regular get-togethers and friends bring friends that you don’t know that well. You may be responsible for their medical bills.
Renters insurance is more affordable than you think
According to the Insurance Information Institute, only 40 percent of renters carried renters insurance in 2015. This statistic is especially staggering considering the fact that 95 percent of homeowners have house insurance.
There are many myths surrounding renters insurance, and a few of them have already been addressed, but the biggest myth is that renters insurance is expensive. Nothing could be further from the truth.
On average, you can expect to pay less than $200 each year. That leaves you with a monthly payment of less than $20. That’s a small price to pay in order to ensure that all of your belongings are protected.
If you’re ready to take renters insurance seriously, make sure you shop around. There are many companies that offer very little coverage for that amount, while others provide much more. In addition, you could save by bundling your policies.
You may also want to talk to your landlord. In some cases, you may learn that your lease requires you to have a renters policy.