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.