More than half of renters don’t have renters insurance. Think you don’t need it? Think again. Renters insurance is something every renter should have. If you need convincing, here are some reasons to consider why you need to get renters insurance today.
1.You need the coverage.
Your landlord may have an insurance policy, but that will not protect your belongings. Your landlord’s insurance policy only covers the building. What if your apartment catches on fire or is robbed? Your personal property would not be covered. You may think you don’t have a lot of belongings -- but all of the money to replace them in the event of a total loss can add up. Consider what you would do if you had to replace your computer, cell phone, television, jewelry, clothes, and furniture. You don’t want to have to pay for all of that out of pocket.
Many insurance policies for renters cover losses from weather events, fires, explosions, theft, vandalism, civil commotion, smoke, damage from heating and cooling systems, and damage from frozen pipes. Most renters policies, however, do not cover losses from floods or earthquakes unless extra protection is purchased. Also, policies typically will not cover intentional damage or negligence. An insurance broker can give you a detailed list of all the things a potential policy you might purchase would cover, and any exclusions you would want to note.
2. It’s inexpensive.
According to the Independent Insurance Agents & Brokers of America, the average cost of renters insurance is $12 per month. This provides around $30,000 of property coverage, which is what the average renter’s belongings are worth. That is much less than what it would cost to replace your possessions. If you think you can’t afford to add the small price of a policy for rental coverage to your budget, consider the larger cost of replacing your belongings in the event of a total loss and then weigh out what you could cut from your budget to make room for adding coverage.
3. It provides liability coverage.
Most renters policies include liability provisions. Liability coverage protects you if someone is injured in your rental unit, or if you accidentally injure someone. It also covers you if someone’s personal property is damaged in your rental unit, and can also be used to pay for legal expenses related to these incidents. Ask an insurance broker about the details of what a renter policy would cover for a full explanation.
4. You’re protected while you travel
Typically, a renter policy covers your possessions, no matter where they are. If you experience a loss outside of your rental unit, you are still covered. This can give you peace of mind while traveling with expensive belongings.
5. It might be required.
There are no laws that require you to have renters insurance. But, more and more landlords are requiring renters to prove they have insurance before signing a lease. You may have an easier time obtaining the apartment you want if you are able to show you have coverage.
If you are a renter without insurance, don’t put yourself in the position of risking your financial future by not protecting yourself. For the price of a few coffees or eating out, you can make sure your belongings are protected.
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