5 Reasons You Need Renters Insurance
Most of the time I am looking for ways to SAVE money, but this is something that I strongly believe you should SPEND money on. If you are renting your home, it is critical that you have renters insurance. In 2015, only 40 percent of renters had renters insurance, compared to 95 percent of homeowners. To me this indicates that when someone is “just a renter” they do not feel it is important to have insurance for their belongings. Or maybe they assume they are covered by their landlord? Do you have heath and auto insurance? I am going to take a guess that the answer is yes – because most people see these as very important policies to have. This is just as important! I remember my parents telling me I needed to purchase it when I rented my first apartment in college and whining because who wants to spend extra money when you already have none on something “you will never use”? I am glad that I had that extra security in the end! Below are some reasons why you should drop everything you are doing and purchase some renters insurance today!
1. Renters insurance is super cheap.
I believe my renters insurance cost me around $9 a month. That is nothing! That is a lunch out once each month that you have to give up. The average monthly cost is $15 depending on your level of coverage but that is still crazy cheap! Give something up. See one less movie. Buy one less coffee. It is all about priorities!
2. You are NOT covered by your landlord’s homeowners insurance.
Did you think that someone else was taking care of you and your stuff? Everyone should know by now that nothing in this world comes free. While your landlord’s policy will cover the structure you live in and major appliances (or it should) it does not cover your personal belongings, theft, or personal liability.
3. Your stuff is expensive.
After reading my last point you might be thinking, “oh that is okay because I have nothing of value in my personal belongings”. WRONG. Try a little exercise with me. Go through your belongings and write each item down and its approximate value…it adds up quickly.
What if something horrible happened to your rental like a fire or flood? Do you really have enough money to replace your entire wardrobe, your bed, laptop, etc? Everyone has more clothes than they think and do not realize this until they are all gone and you have to spend hundreds of dollars to replace them!
4. Renters insurance covers theft.
If someone breaks into your rental and steals your belongings and you have renters insurance, you can file a claim for the value of your stolen items! This is not something that I worried too much about until it happened to my then fiancee. Michael lived in a rental house with two roommates and one day they came home from work and noticed that some big ticket items were missing like their Xbox, iPod, money, etc.
Unfortunately for him, he did NOT have renters insurance. The police eventually caught the kids who were breaking into homes during the day but their stuff was already gone, so Michael never recovered the value of his items.
Luckily they did not take everything of value – just stuff that appealed to them as teenagers – but it is still not a fun experience by any means. You always think these things could never happen to you…until they do!
5. Renters insurance covers items located outside the rental.
If you travel around with your laptop or tablet a lot then this one is for you. I was surprised to learn this about my own renters insurance policy but it made me feel better as a college student who traveled with a lot of belongings on a regular basis. If something is damaged or stolen from your car or while out and about, you are covered!
If you were not swayed by any of the points above about why you should have renters insurance…well then I hope you have good luck. Most people will need their insurance for something at some point in their lives. I strongly urge anyone who is reading this and doesn’t have renters insurance, no matter how young or old you may be, to get out there and check out some policies with your favorite insurance company or bank.
Does anyone have a time where their renters insurance came in handy?
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