Kitchen Fire
Many people know that having insurance is a good thing. We all insure our cars in case of accidents or in case they get stolen; we are also all required to get health insurance in case we get sick; and we should all have emergency insurance in the form or an emergency fund. We also know that if we have a house, we need home owners insurance so we’re financially protected in case something happens to the house.
But the one thing that many people ignore is renters insurance. Renters, for the most part, don’t think about insurance because the place they are renting is not theirs or they think their belongings are insured through their landlord’s insurance policy.
Landlords have insurance on the apartments, but only for structural damage, not for the things that are inside the apartment, a.k.a. your things.
If there is a fire in your apartment and it burns down, the insurance company will pay the landlord to fix the place up, but it will not pay you for your burnt couch, mattress, TV, or computer. For that, you need renters insurance.
Why You Should Get Renters Insurance
A few weeks ago I went out for some drinks with a few friends. For some reason the conversation wondered onto whether or not I had renters insurance, which I do. My friend Nikhil said, “Good! I always ask people about renters insurance after what happened to me.”
“Wait, what happened to you?” He went on to tell me that there was a fire in his apartment building and ten apartments were affected. Luckily he had renters insurance so he was able to replace most of his things. Eight of his neighbors did not have renters insurance and lost everything. Only two out of ten apartments affected by the fire had renters insurance.
His insurance did not replace everything that he had, but it replaced most of the material things in his apartment. Of course there are irreplaceable things like family pictures and things that have a sentimental value that’s greater than all the money in the world, but at least he didn’t have to use his money to buy a new bed.
What is Covered by Renters Insurance
Most renters policies not only cover losses related to fire, but also to smoke, theft or vandalism. It also covers damage from weather events like rain, wind, snow, and lightning.
Most policies also offer liability protection, which means you are protected to a determined amount if somebody gets injured in your apartment/house and sues you.
***Not all policies cover the same things so make sure to read what they actually cover before purchasing a policy.***
Where to Get Renters Insurance
The first place you should check is with your auto insurance company. Give them a call or check online to see if they offer renters insurance. You might be able to save money by bundling the auto insurance and renters insurance.
But you should also check other companies to see who offers the best coverage for the best price. You have to find the balance between the type of coverage that you need and the price you are willing to pay. But don’t skimp on insurance. You might regret it later.
And don’t worry. Renters insurance is very inexpensive. The average renters insurance policy cost between $15 and $30 a month. This is very inexpensive considering what it’s designed to do.
Don’t get caught without renters insurance because you never know when you’re going to need it.
I don’t have renters insurance simply because I don’t have many assets. It’s honestly not even worth $5/month to me as I’ve been offered by GEICO.
I don’t know, Will. Think about it, there might be something in your apartment that is worth more than $60, which is the annual cost of the renters insurance for you. Just think about it.
I will not go without renters insurance. The cost per year is $125 and we are well covered and for us its about peace of mind.
Renters insurance is so inexpensive that to us it’s a no-brainer.
I’ve never gotten any renters insurance while I rented but I do see a point of having one though.
You should look into it, Tawcan. It’s really cheap and it could keep you from having to use your savings in case something happens.
We were required to have renter’s insurance when we moved into our apartment. They wouldn’t let us sign the lease without it. I’m grateful for that, as when we rented a basement apartment, we got lazy and never signed up for it. It’s definitely better to be safe than sorry when it comes to your belongings. I wouldn’t want to start over with nothing!
They didn’t require it for us, but I wish they did. We have insurance anyways, but I wonder if other people in my complex do as well. I would hate to see my neighbors lose everything.
I had an acquaintance on facebook have a fire in her apartment (not a horrible one but still causes a lot of damage from the smoke and soot).. she was not insured. It was sad to see but I think it’s always important to have those things taken care of.
That is pretty sad. I always hate to hear about things like that, whether you have insurance or not. However, not having insurance would complicate things a little more.
Renters insurance is so cheap and easy. I haven’t rented in a while, but I did when we were tenants. It’s one of those things you hope you’ll never need but are really glad you have it if you need it.
I never had renters insurance until a couple years ago when the other end of my apartment block caught fire. The smoke traveled through the attic and I had smoke damage but luckily that was all. I had to be relocated due to the smoke damage and the fact they killed power to the whole building. Close call. We have the insurance now.
Great post, Aldo. When I rented, I had renters insurance. It’s so cheap, and so worth the money!
Renters insurance is one of THE BEST insurances you can get because it is not only cheap, but can cover a number of situations. I make sure that every one of my clients has it.
I never had renters insurance when I rented a room and didn’t have any of my own furniture (my most expensive possession was my ipad)… but when Aldo and I moved in together it made sense to protect our home, even if it is just a little 1 bedroom apartment. I’ve just heard too many stories of friends’ apartments buildings/complexes burning down.
My boyfriend got robbed last Xmas and didn’t have renter’s insurance- they swiped thousands of dollars worth of stuff :/
We absolutely had renter’s insurance when we rented. I totally agree with you that it’s pretty vital. And, it’s often extremely cheap!
The coverage you mention is a great reason to have a renters policy but the best reason is the liability coverage. What happens if you are burning a candle forget about it and burn down a few units in your complex? Does the apartment complex owners insurance cover that? Maybe and maybe not.