August 4th, 2014
The fact is that almost all homeowners have insurance for their property and belongings, but few renters have policies that will provide them coverage. This may be due to the fact that not enough people are aware of the benefits and protection that renters insurance can have or they may be misinformed about how these policies work. If you're a renter, but don't have insurance, you should think about getting a policy right away. Here are a few questions you might have about renters insurance:
Doesn't my landlord have insurance?
Most likely, but this doesn't help you much. Your landlord likely has an insurance policy on the entire building, but these typically don't extend to your personal belongings. In short, you need your own for full coverage.
Do I need it if I don't have a lot of stuff?
Yes, you do. Even if you don't consider your belongings to be particularly valuable, your finances would definitely take a hit if something were to happen to your stuff. Think about everything you own, including furniture, personal effects, electronics, clothes, dishes and even your bicycle. Now, what would you do if all those things were to be destroyed in a fire or stolen? Could you afford to replace everything? Most likely not. While no one likes to consider this kind of scenario, you can easily protect yourself from a financial downfall with a renters insurance policy.. Not to mention, insurance will also cover you with liability protection, which is crucial if you were to be involved in a legal situation with someone who had been injured at your place.
How much insurance do I need?
This is a tougher question to answer, because the amount that you need will depend on the type of belongings you own and how much coverage you want. In general, you should get enough coverage in your policy for your personal stuff so that you could replace it all if need be. The best way to determine this amount is to work with an insurance agent to find an estimate. Of course, the more stuff you have or the more valuable it is, the more coverage you may need. For instance, if you have valuable art or antiques, you will need to list these items on their own to increase the coverage amount.
Is renters insurance affordable?
When you're a renter, there are a few things you need to pay for each month, such as rent and utilities. You may be thinking that you don't want to add another expense to the list, especially if you're stretched thin or working on other financial goals. But the truth is that most renters insurance policies are very affordable for most budgets. In some cases, you could only end up paying about the cost of a movie ticket for a monthly premium. Compared to the risk of being unprotected without a policy, the low cost is well worth it. Check out our comparison tool at CoverHound to look for policies that fit your budget.
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