You know you need car insurance and most people know they need insurance when they buy a house, but what about renters? Did you know that renter’s insurance offers protection too? You may not think you need insurance since you don’t own the home, but you do. Accidents and disasters happen and if you own any type of personal assets, you’ll likely want them protected.
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Less than 50% of renters actually carry renter’s insurance though thanks to a multitude of myths. Keep reading to learn the truth about rental insurance and why you should consider it.
Myth: It Costs too Much
Truth: Renters insurance is one of the least expensive types of insurance available.
Renters often avoid renter’s insurance because they don’t want another expense. It’s understandable since rent, utilities, and the cost of daily living can really add up, but renter’s insurance helps protect everything. Think about what would happen if you lost everything in a fire. You’d have to replace all of your personal belongings – that would cost a lot more than renters insurance would cost. On average, renters pay $16 – $20 per month.
Myth: Your Landlord’s Insurance Covers You
Truth: Your landlord only covers himself and his interests in the home.
Yes, your landlord has to have insurance, but it doesn’t protect you. Landlords carry insurance to protect the physical building. If there is storm damage, a fire, or vandalism, the landlord’s policy would cover it. But that’s it. The landlord’s policy wouldn’t cover the loss of your personal belongings or the costs to pay for your visitor that fell and broke his hip on your porch. Landlords protect themselves, not you. Renter’s insurance provides the coverage you need.
Myth: Renter’s Insurance Only Covers your Belongings in Your Home
Truth: Renter’s insurance covers your belongings even when you experience a loss outside of your home
Just like homeowner’s insurance, renter’s insurance provides protection outside of the home too. If you experience a loss of personal belongings due to theft or vandalism outside of your home, your renter’s insurance policy may cover some of the expense of replacing it.
Myth: Your Roommate’s Insurance will Cover You
Truth: You need your own insurance policy.
Just like any other insurance policy, renter’s insurance is individual. If your roommate has it, the policy will only cover his or her belongings. If your roommate has to file a claim, the insurance company will require proof of ownership of the items he or she claims.
Myth: You Don’t Have Enough Stuff
Truth: You probably have more than you think.
You may think that just because you rent, you don’t own enough stuff to buy insurance. Stop and think about it for a minute. If you lost everything right now, could you afford to replace it all on your own? Think about your clothing, jewelry, furniture, home décor, and all other belongings. You likely own more than you realize and need the coverage to protect you. If you are unsure, take a quick home inventory and see on paper what you truly own. It all adds up quickly!
Renter’s insurance is important for every renter. If you have any belongings that cost more than what you could pay to replace, you need coverage. Renter’s insurance is inexpensive, but is one of the most effective ways to protect your belongings even though you don’t actually own the home.
Get the right insurance coverage.