Why You Should Have Renters Insurance.
You might assume you don’t really need renters insurance if you’re moving into your very first apartment or are under the impression you don’t have any possessions valuable enough to justify the expense, but the truth is—you do. And believe it or not, the price of this type of policy is totally worth it when you account for the considerable protection it provides.
What is renters insurance?
Renters insurance is a type of insurance policy that typically provides coverage for:
- Personal property loss due to fire, theft, or vandalism
- Third-party liability claims
- Having to pay out-of-pocket for any expenses incurred due to an apartment becoming uninhabitable at some point during the lease
At first glance, these benefits may not seem very impressive—but, should you ever find yourself in one of the aforementioned situations, their true value is instantly clear.
Why do you need it?
Aside from the fact that most rental properties now include a requirement for you to have some amount of renters insurance written into their lease agreement, there are still countless reasons for you to get coverage—even if it isn’t required. Take a look at the following hypothetical situations listed below, and ask yourself if you would want to be insured in the event they happened to you:
- You return home one day to discover your home has been broken into, and your computer, TV, and jewelry are missing—everything of value has been stolen.
- The small fire you accidentally started turns into an uncontrollable blaze and destroys not only your home but your neighbor’s as well. They decide to sue you in order to recover their losses.
- Your home has become uninhabitable due to a damaged roof or severe flooding from a broken pipe. Now you discover you’re still responsible for rent each month even though you can’t live in the place you’re paying for. (Yes, this can really happen, depending on where you live and the terms of your lease.)
If you’d want to be insured in the case of any of the scenarios we listed above, renters insurance is the right choice for you.
How much does it cost?
Coverage is great, but if it’s cost-prohibitive, it will be difficult to justify the expense. Fortunately, the average renters’ insurance policy only costs $187 per year. That translates to less than $16 a month for an enormous amount of protection. It’s literally a small price to pay for peace of mind.