Why You Need Renter’s Insurance

Renter’s Insurance is arguably the most misunderstood of all types of insurance policies. That would explain why only 43 percent of the renting population has renter’s insurance, versus the 96 percent of homeowners who have homeowner’s insurance. Below are some of the myths and misconceptions about renter’s insurance.

1. My landlord has insurance, so I don’t need my own.

While it is likely that a landlord has insured his or her building, that policy only covers losses that the landlord incurs during a situation like a fire or other property damage. Furthermore, if the landlord’s losses were due to negligence of a tenant, that tenant would likely be responsible for payment of the damages. Renter’s insurance offers coverage for property loss due to fire or smoke, lightning, vandalism, theft, explosion, windstorm and water damage from plumbing. It also provides for the temporary lodging you would need after such an event.

2. I don’t have that much stuff anyway.

Is $20,000 a lot of stuff? A recent survey found that approximately 45 percent of renters have at least $20,000 or more in clothing, furniture, electronics and other assets. Even if you do not believe you have that much, are you really prepared to re-purchase every item in your home? How long could you go without a bed, computer and clothes?

3. Renter’s insurance rates are too expensive for me.

At an average of $260 per year, or approximately $22 per month, renter’s insurance is possibly the most affordable insurance you will ever encounter. Renter’s insurance rates do vary based on the amount of coverage you desire and the deductible you choose. An insurance agent will be glad to help you find the most affordable rate for your needs.

4. That sounds good, but renter’s insurance only covers what is in my apartment.

Nope! A renter’s insurance policy covers your items, whether they are in your home or car, or even while you are away on vacation. And that’s not all that may surprise you. Renter’s insurance also provides personal liability coverage, both medical and legal.

Personal liability coverage means you are covered for damage or legal bills, should you accidentally cause damage or should someone have an accident in your home. If your clumsy cousin trips over a chair and loses a tooth, you are covered. If you get a little aggressive with the lighter fluid and burn a hole in the patio, you are covered as well.

Don’t be one of the many renters who claims to know about renter’s insurance but hasn’t found the time to do anything about it. Life happens—sometimes it happens to you and sometimes you bring it about. Either way, wouldn’t it be nice to know that when unpleasant events strike, you have the coverage you need to get through it all?

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