This is Why Renter’s Insurance is Worth It
When moving into an apartment or condo for the first time, there tend to be a lot of expenses, from moving trucks to security deposits to new furniture. And when renter’s insurance gets added to the end of the list, some people balk at the prospect of yet another cost; in fact, only 41% of tenants decide to opt for this coverage. They often belief that it’s not necessary, and they can get by without it.
In our opinion, foregoing renter’s insurance is a huge mistake. Here’s why.
Where Renter’s Insurance Comes In
For people who have a lot of valuables in their apartment or condo, the decision to get renter’s insurance is easy. But a common argument by those considering skipping coverage is that they “don’t really have anything they need to protect.” For example, the only electronics some new grads own are their phone and laptop, which they pretty much carry everywhere – so what are they really protecting? Those in buildings that have doormen think they’re protected from theft, so what do they have to worry about?
But this mindset doesn’t take into consideration other dangers, or the cumulative cost of items you might not have thought of – if you lose your bed, you’re out a few hundred dollars; your kitchen appliances, another couple hundred. Clothes, pots and pans, furniture…could all be wiped out by a fire or burst pipe. Your landlord’s insurance won’t cover any of that, so if you don’t have insurance of your own, then you’ll be starting from scratch.
Even if you don’t think you have much in the way of valuables, there are still many scenarios in which you can end up losing a lot of money if unprotected. If you accidentally cause damage to the apartment beyond what your security deposit covers, your landlord can sue you for the difference. You’re also liable if someone gets hurt in your apartment and sues you to cover medical bills. In either case, your renter’s insurance would cover or allay those costs.
Why You Should Get Renter’s Insurance
This is an easy one: get renter’s insurance because it costs an average of about $10-20 per month, and can protect you from all of the above. There’s really no reason not to protect your belongings for such a minimal cost. After all, if you’re concerned about saving $200 a year, what sort of shape do you think you’d be in if your electronics, jewelry, and bicycle were stolen or destroyed? Insurance providers will work with you to determine a coverage level that works for you, depending on the value of your belongings and the premium you can afford.
Renter’s insurance is an incredibly valuable safety net, and can even cover you in case you’re forced out of your apartment; in many cases it will even pay for temporary accommodations while you get your living situation remedied. Most renter’s insurance policies also cover your belongings even when you’re not home – so when your bike disappears while you’re in the coffee shop, you’ll be happy to know the burden of replacing it won’t be on you.
The choice to get renter’s insurance is not really a matter of weighing the pros and cons – it should be an easy decision, a worthwhile purchase that protects you from a wide variety of dangers and puts your mind at ease.