One of the misconceptions that many consumers have is that you need a home in order to protect your abode with insurance. As a result, many renters don’t purchase insurance policies.
Renters need insurance as well. A landlord has insurance to protect the structure itself, but the landlord’s insurance isn’t going to cover the cost of replacing your belongings if they are damaged or destroyed. This is what renter’s insurance is for: To make sure that your things are covered.
How Valuable is Your Stuff?
You might be surprised at how valuable your things are. Think about the items that you have in your rental unit. Add up how much it would take to replace your furniture, your TV, your computer, and other things that you have. Many renters are surprised to realize that their stuff is “worth” between $2,000 and $10,000 -- or more.
If something happened that resulted in the damage or destruction of your possessions, would you be able to replace them without help? Chances are that you wouldn’t be able to. Renter’s insurance can help you pay the costs associated with repairing or replacing the damaged items in your rental.
How Much Does Renter’s Insurance Cost?
The good news is that renter’s insurance doesn’t usually cost very much. Most renter’s can afford to purchase a policy. Depending on the amount of coverage you get, renter’s insurance can cost anywhere between $5 and $20 per month (or a little more).
Shop around for quotes to see where you can get the best deal. In many cases, insurers will allow you to bundle your renter’s insurance with life insurance and/or auto insurance. Bundling this way can lower your premiums overall, and save you a little bit of money each month.
Even if your current insurer won’t give you a good deal, you can usually still find a good deal elsewhere. Check for the best rates, and make sure you understand what the coverage entails before you sign up for a policy.
Bottom Line
Even as a renter, you probably have items of value that need to be protected. Just relying on whatever insurance the landlord has probably won’t replace all of your items if there is a disaster of some sort. Instead, for a few dollars a month, you can get renter’s insurance to protect your assets, and ensure that you can replace any items that are destroyed.
