Do You Need Renter’s Insurance?

renter's insuranceOne of the mistakes that many non-homeowners make is the idea that they don’t need some sort of insurance for their dwelling. Many renters neglect to pay money for renter’s insurance — and end up regretting it.

I originally thought that renter’s insurance was unnecessary as well. As newlyweds in an apartment, my husband and I didn’t even consider renter’s insurance. When we asked an insurance-agent friend about auto and life policies, he said that we should get renter’s insurance as well.

It seemed a little strange to us, but he explained that renter’s insurance was a good choice.

You Have More than You Think

First of all, we discovered that we had more than we thought. We didn’t think that, as college students, we had much in our apartment worth insuring. The truth, though, is that we had more than we thought. We had a TV, and a TV nice TV stand. We had a bed. And, of course, we had a computer. There were various other items as well. We were surprised that, even though most of our possessions were fairly modest, it still added up to more than $2,000 to replace everything. And we knew that we would soon be adding baby items to the mix, boosting the cost of replacement.

That amount seems rather modest right now, years later, but at the time, living off wedding present money and student loans and grants, the idea of replacing more than $2,000 worth of stuff was horrifying.

Landlords, of course, have insurance to protect them. But the protection the landlord receives doesn’t cover renters. If you want the contents of your apartment to be protected in the event of a disaster, you need to get the coverage yourself. Renter’s insurance can be just the thing.

Renter’s Insurance Isn’t Very Expensive

One of the great things about renter’s insurance is that it doesn’t cost very much. You can get decent coverage without cheaping out.

For a few dollars a month, you can cover the cost to replace the contents of your rental home or apartment.

It’s well worth it, especially if your rental is full of electronic gadgets.

Additionally, in many cases your insurance agent can get you a tri-line discount with the help of renter’s insurance. Combine renter’s insurance with your auto insurance policy and life insurance policy, and you could get a discount for having multiple policies with one company. That could save you in more premiums, while at the same time providing you with the peace of mind and protection.

Renter’s insurance is a must for most people. Add up how much it would cost to replace the items in your rental, and then determine whether or not it would be easy to pay the cost of replacing those things. If you know that you would be overwhelmed with the costs, ask about renter’s insurance. It’s usually worth the money, and if a catastrophe ruins your rental, you’ll be glad that you have the insurance money to help you replace your stuff.

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Comments | 2 Responses

  1. says

    Ah, the “bundling” of all your insurance needs is a double edge sword. We have our car, home, and business insurance all through the same agency. On one hand, we get a discount. On the other hand, switching is as not as easy anymore. But, whether you “bundle” or not, definitely get that insurance.

  2. says

    Considering the cost is so inexpensive and that by bundling your auto and renters policy together with the same company can provide savings of up to 15-20% off, the entire cost of your rental insurance premium can be wiped out. Besides the savings, there is also the advantage of having your personal property protected from theft, it’s also good to know a renters policy protects your liability in case someone gets bit by your dog or slips and falls inside your apartment. At the end of the day there really is no reason not to have a policy.

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