Do I Really Need Renters Insurance?
Without a doubt, it’s a question that renters throughout the ages have posed. For many renters who live on a tight budget, the idea of adding yet another bill to the daunting list of payables is a pretty unattractive notion. It’s an investment that’s well worth it, however. While we’re truly sorry to be the bearers of bad news, we’re here to tell you that you really do need a good renters insurance policy.
Reasons Why You Really, Really Need Renters Insurance
It’s Not as Pricy as You Think
Here’s the good news, though: renters insurance isn’t nearly as costly as homeowners or auto insurance. In fact, it’s one of the cheapest forms of insurance available. For pennies per day, or about $20 a month (or, to put it another way: the price of a pizza), your personal possessions and electronics are covered from theft, fire, flooding, and more. Policy rates may vary, so be sure to shop around and look for the best policy at the best possible price.
You’ll be Surprised by How Much Your Stuff is Worth
Renters insurance is an excellent idea for every renter, even for those who have just flown the coop or who are fresh out of college. You may be thinking, “But I don’t have that much stuff and the stuff I do have isn’t worth anything!” In an article published by US News and World Reports, Keith Rutman, a former Chief Operating Officer at Allstate encouraged renters to conduct a detailed inventory of their apartment, room by room, and take note of everything from towels to toasters to iPads. “Most people usually only think of the big-ticket items, like electronics, but if you really think about it, it’s so much more in that…We find that the average renter in a two-bedroom apartment has about $30,000 worth of stuff.”
Your Landlord Won’t Cover Your Personal Losses
One of the delightful things about renting is that you have a landlord to maintain the property, shovel the sidewalks, arrange for garbage disposal, and replace major appliances when they go on the fritz. While a good landlord is responsible for a good many things, and their policy covers the roof over your head, your personal possessions are not on your landlord’s maintenance list. If someone breaks into your apartment and takes off with your $2000 computer or the aged freezer goes kaput the day after you stocked it with $200-worth of groceries, your renters insurance will help you recoup your losses.
Renters Insurance Protects You From Yourself
Let’s say, hypothetically, that you accidentally left the faucet running in the bathroom and your tub wound up in your downstairs neighbor’s apartment, or your good friend stumbled over a power cord, broke his toe, and decided to sue you. You, good renter, would most likely be responsible for replacement, repairs, and damages. With the personal liability coverage that renters insurance provides, you’re well-covered in any event, regardless of who’s at fault. Renters insurance could be a financial lifesaver.
Everyone’s Doing It
Okay, not everyone has gotten on the renters insurance bandwagon, but in 2015, 40% of renters reported having the insurance. While that’s still a shockingly low percentage, it’s up drastically from the 29% reported by the Insurance Information Institute in 2011.
Now that you’re ready to take the plunge, shop for renters insurance carefully. There are two basic kinds of renters insurance: replacement cost value or actual cash value. While replacement value will cost you a little more (although we’re likely talking about pennies per day, here), it’s probably wise to invest in replacement value over the actual cash value of your well-loved and well-used possessions.
For more information about affordable and comprehensive renters insurance policies, contact Royce Williams Insurance today.