Do I Need Renter’s Insurance?

 

Like any investment you make, you want to know that you are protected. If you buy a car, you buy car insurance. If you buy a house, you buy house insurance. If you rent an apartment, you … buy renter’s insurance? Renter’s insurance may seem like a practical purchase, but a majority of renters do not have insurance for their apartment or rental home. According to a recent survey by InsuranceQuotes.com, nearly six in 10 Americans who rent their apartment or home do not have renter’s insurance (http://www.insurancequotes.com/press-room/six-in-ten-lack-renters-insurance). InsuranceQuotes.com also looked into how much the average cost of renter’s insurance is per annum. The National Association of Insurance Commissioners reported the average cost is only about $187 per year. Most renters do not buy insurance for their rentals because they think that their insurance is part of what the property owner pays for insurance, or they think it is just too expensive.

So, why buy renter’s insurance?
Typically, your landlord’s insurance does cover the actual place you live, but none of your possessions. If there was a fire in your apartment or your living space was robbed, you would be on your own for replacing your personal items like televisions, computers, phones, stereos, tennis rackets, jewelry – the list goes is never ending. Unless you win the lottery or have a thriving savings account, these items will be expensive to replace.

Still not convinced? Events that could cost you include:

  • Power surges
  • Fires
  • Theft
  • Flooding
  • Windstorms
  • Bodily hard due to negligence

 

If your friend slips in the shower and breaks his or her arm, the medical bills could come to you. Maybe a tree falls through your window during a crazy thunderstorm or the rain from the storm floods your basement. Even if these events seem unlikely, they are the same events that prompt people to buy home, car, and life insurance. You are paying for security in the event that one of these scenarios does happen. Renter’s insurance is often customizable, in that you can choose to cover some or all of these perils.

The Next Steps
Contact an insurance provider. If you have car insurance, see if your provider offers insurance bundles or gives discounts for having more than one kind of insurance under its umbrella. Many resources exist to help you find the best insurance for you on the Internet, including insurance company websites.

When you approach your insurance provider for renter’s insurance, have an estimate of the value of your possessions. If you are struggling to come up with a number, take pictures of all your valuables so in the event of one of these unfortunate scenarios, you can take inventory of what is damaged/missing, and come up with a dollar amount. Don’t be afraid to ask questions and make sure you understand what your insurance actually covers, since insurance plans vary by provider.

By taking the time to ask these questions and research your options, you can avoid potential, unnecessary expenses – and sleep just a little better at night.

A Few Renters Insurance Providers: