Is renters insurance important? If you answered no, you might want to guess again. Renters insurance is a valuable protection for anyone renting space in an apartment building or other residence. Unfortunately, too many people fail to understand how insurance works, and how renters insurance can protect them in the event of an accident.
Even though it’s often available at a nominal cost, many renters decide it’s an unnecessary expense. Renters may wrongly assume that other forms of insurance will cover their losses.
To address the numerous myths circulating about renters insurance, we’ve taken time to debunk some of the more common assumptions. Here’s the skinny on the myths regarding renter’s insurance.
Myth 1: Your landlord’s insurance will cover your losses
If you’re a renter, it doesn’t really matter if your landlord has property insurance. That insurance will cover your residence, but nothing stored in it. That means that if a fire destroys all your belongings, property insurance will pay to rebuild the house, but it may not give you a cent for your lost possessions.
Myth 2: Renters insurance is expensive
Concerned about the added cost of renters insurance? Don’t be. These insurance policies often cost less than a few fancy drinks at your favorite coffee shop. And considering that apartment fires caused more than $1 billion in damages in 2010, you’re better off preparing for the worst than being surprised by it.
If you’re on a budget, weigh the cost of insurance with the cost of having to replace every item you own, out of pocket. You may feel more confident about insuring your belongings when you know about some of the common rental insurance claims in your part of the country.
Myth 3: You don’t need insurance if you don’t have many belongings
You may be inclined to think that you don’t have enough valuable stuff to warrant an insurance policy. But even low-cost assets can add up quickly. Computers, televisions, furniture, appliances, electronics, clothes – all of this can quickly add up to thousands of dollars, and it’s all eligible to be covered by renters insurance. The less coverage you need, the less renters insurance will cost, so take comfort in knowing that fewer assets will only lower the already-affordable cost of your renters insurance. And look carefully at your lease; your landlord may specify that you are required to have renters insurance.
Some insurance companies also offer tools to help you tally up the cost of your belongings, offering some guidance when choosing a level of coverage for your policy.
If you’re still unsure about how to approach a renter’s insurance policy, take time to talk with an insurance agent who can offer some guidance about how to quantify what you have and approach a renters insurance policy. The priority is settling on a policy and getting coverage in place sooner rather than later. The longer you delay, the more likely you may be out-of-luck in the event of an emergency.