Measuring the Necessity of Renters Insurance
When renting property, a landlord or the homeowner will usually cover maintenance expenses and resolve most problems. However, what happens if there’s a robbery or a fire? Contrary to popular belief, some accidents that may arise aren’t the responsibility of the landlord. For protection from those incidents, there’s renters insurance.
Is Renters Insurance Really Worth It?
The Cost of Coverage
According to the Insurance Information Institute, nearly 95% of our nation’s homeowners have at least one form of homeowners insurance. So why is the rate for those who have renters insurance only 40%?
For the most part, renters insurance will only cost you about $15 a month for coverage. To put it in perspective, for about the cost of a pizza pie every month, you’ll be able to at least cover all of your personal belongings, depending on your coverage.
At that value, it doesn’t seem like an entirely unreasonable expense. However, it seems that most individuals don’t know the facts about renters insurance and its benefits.
Protect your Belongings
If there’s a break-in at your rental property, recouping your losses is entirely your responsibility. Unless there was some negligence in security, then in that case liability would fall to the landlord.
Footing the bill for all of your valuables might be too expensive or just plain impossible. However, renters insurance can save your wallet both figuratively and literally.
The right policy will cover the cost to replace or recover all lost belongings- whether it’s by robbery, fire, natural disaster or otherwise.
Some insurance policies will even compensate you the same if your goods are stolen from your apartment or away from home. Likewise, you’ll also be covered if someone else is hurt or has their goods stolen in your home.
But Do You Need It?
Sure, renters insurance may not seem like all that much money, but it can add up. There are a few things to consider before committing yourself to any specific policy, if at all.
First, assess the contents and value of everything you possess, or at least what’s in the property in question. Say, for instance, there’s some horrible accident and everything you own is destroyed. Try to figure out how much it will cost to replace or refurbish what’s lost.
Then, think about its value weighed against the probability of loss during your time occupying that space. Take into account where you live, who you live with, the neighborhood, the climate, weather tendencies and building history.
If you feel that the benefits of insurance outweighs risk, then by all means opt for renters insurance. But if you feel the value of your goods isn’t worth it and there’s a low probability of incident, maybe renters insurance isn’t right for you.
Renters insurance isn’t always needed, but it certainly helps. After weighing all of your options, you’ll be able to make a better informed decision on if it’s right for you.