Are you hesitating about the value of renter's insurance? Let's clear up some myths that might be clouding your view!
1. Renter’s insurance is expensive
Renter’s insurance is quite the opposite, actually! Typically, policies cost around 30-40 dollars a month, or $360 a year. If you ask us, that’s a small price to pay to protect all of your belongings from flood, fire, and theft, in addition to the liability coverage this provides should someone sue you for an incident that occurs at your house!2. I am protected under my landlord’s insurance policy.
Unfortunately, this is a myth we encounter a lot! While your landlord does have an insurance policy for your unit, it only covers the physical unit that the landlord owns. For example, if a fire were to destroy your rental house, your landlord’s policy would pay to replace the physical structure and items such as the stove and the washing machine that was owned by the landlord. Your tenant's insurance would then cover the items that you own, and none of the items owned by the landlord.
3. I don’t have that much stuff, so I don’t need insurance.
Look down at what you’re wearing right now. You might be at work: wearing a dress shirt, dress pants, a belt, socks and shoes. You also wear a watch that was a gift from your mom and dad, and can’t go anywhere without your glasses. Your Yeti mug sits in front of you, and your purse or backpack is beside your desk, filled with things like your keys, your ID and payment cards and maybe a pair of sunglasses. Total value of all those things? Easily $500, and that’s just what’s with you right now!You really need to look at Every. Single. Item. that you own, and assess it’s value. The contents portion of a renter’s policy will pay to replace your belongings that were lost or damaged in the unit (up to your policy’s limit). That’s all your pots and pans, your shoes, your couch, computer, desk, cat toys and supplies, bed, dresser and your clothes. You really do have more to your name than you think!