Most homeowners have insurance for their homes. They understand that unforeseen things can happen to their homes and possessions that could devastate them financially, so they protect themselves with a homeowners policy. Unfortunately though, while renters insurance is widely available, renters often feel that they don’t need to insure their possessions. Reasons for this feeling vary, but as we’ll see, this belief is often misguided. Let’s take a look at some of the most common renters insurance myths and the reasons they usually aren’t true.
#1: My landlord’s insurance will cover me.
This is highly unlikely. Your landlord’s insurance covers the building itself, but it won’t cover your personal property unless the damage is due to the landlord’s negligence. If you are robbed or if there’s a fire, for example, your property is your own responsibility. Having good tenant insurance is a great way to ensure that you won’t have to dig into your own pockets or beg from friends and family to replace your possessions if disaster strikes.
#2: My property isn’t worth insuring.
If you live in a rented home or apartment, renters insurance might feel like an unnecessary expense. You might think that you don’t own enough to be worth insuring. However, there’s a good chance that your property is worth more than you think. Have you really calculated the value of all the things you own? Would you really have enough cash to replace all of it? Your furniture, computer, TV and other electronics, all your clothes – you’ve probably acquired them all over time without realizing how much you’ve spent. Add it all up and there’s a good chance you have tens of thousands of dollars worth of stuff. Renters insurance coverage makes it easier on your wallet if you ever need to replace it all.
#3: It’s too expensive.
A lot of people make this assumption without really looking into the cost. They look at the cost of other insurance policies they hold, such as auto and health insurance, and assume that renters insurance cost will be comparable. Once you take the time to research rates, you’ll find that the average cost of renters insurance is less than $200 per year. Many of us spend much more on overpriced coffee shops. Considering how cheap renters insurance can be, it really just makes sense to have this coverage.
#4: It only covers my own stuff.
While renters insurance does cover your personal property, we’ve all heard horror stories of a flooded bathroom causing damage to a downstairs neighbor’s property. Or what about the unfortunate circumstance of someone being injured inside your apartment? Turns out, renters insurance includes a liability component. These types of situations will be covered up to the liability limit on your policy.
With these common renters insurance myths out of the way, there aren’t a lot of reasons for most renters to skip this valuable coverage. There are a number of renters insurance companies out there, and one of them is sure to have the right policy for your budget and your needs.
Find out how affordable renters insurance can be when you request a quote from Freeway Insurance. Give us a call at 800-777-5620 or request a renters insurance quote online.