Did you know the cost of renters insurance each month is roughly $1 per day? That’s a fairly modest amount to insure your personal belongings and protect yourself from legal and medical expenses, should there be an accident in your home. Let’s consider some of the common misconceptions about renters insurance.
I Don’t Have That Much Stuff
If you rent, you might think this is an area where you can save a few bucks. But think again. Most insurance companies agree that the average renter of a two-bedroom apartment, owns about $30,000 in personal property. When you look around your apartment, don’t just look at furniture and computers. Look at all the small items too. Small kitchen and bathrooms items can really add up. Walk through your apartment and do a quick inventory of each room. You might be surprised how much you’ve already invested in your lifestyle and living space.
Also, when you live in an apartment, you may live a fairly quiet life. But even if you don’t engage in any risky behavior, your neighbors might. In a complex with numerous tenants, renters are vulnerable to the actions of their neighbors, and their guests. Even under ideal circumstances, accidents can happen. And nobody ever expects a fire or a break-in. That’s why you need to be prepared and insured, in case of an emergency.
My Landlord Will Pay For Any Property Damage
Nope. Usually the insurance that landlords hold on their property covers the structure only. So if Mother Nature has a temper tantrum while you are at work, or your upstairs neighbor leaves the water on and floods your apartment, the landlord is only responsible for repairing the structure. Also, if it’s your bathroom that overflows and damages your neighbor’s sofa below, you will be responsible for the repairs. Your renters insurance should cover that damage.
If your appliances are included in your rental unit, the landlord is not responsible for any damage they might cause to your property. If your oven malfunctions and triggers a sprinkler, the landlord is not responsible for the water damage. If your refrigerator goes out the day after you went grocery shopping, your landlord is not responsible for the food and money you lost.
Renters Insurance Only Covers My Personal Property
Liability is another area most people overlook when considering renters insurance. If someone trips over your coffee table or stumbles over your kitchen rug, could you afford to pay for their medical bills? What if the injuries were quite serious and a lawsuit ensued? Could your cover the cost of legal representation?
I Can’t Afford It
Most renters insurance policies will cost somewhere around $1 per day, to insure your property and protect you, in the case of an accident. You might also be able to get a discount if you purchase your policy together with your car insurance. Policies will vary from company to company. When you talk to your agent, make sure you understand what the policy covers; and whether that coverage is actual cash value or total replacement cost. A cash value policy will replace your items for what they are worth today. A cash value policy will pay you the depreciated value.
Renters Insurance may seem like an extra expense. But there are probably lots of places in your budget where you could find $1/day for complete peace of mind. Additionally, if you came home from work to find your apartment destroyed by bad weather or a fire, at least you wouldn’t have to worry about starting over with nothing.