Is Renter’s Insurance Worth It? 5 Reasons It Is!

is renters insurance worth it

What would you do if you suddenly lost all your stuff? Say your apartment building burns down or an airplane crashes into it. Yeah, it’s rare but it happens.

Since you’re renting, chances are that you may not have a lot of stuff. But imagine having to replace it all at once. If you’re one of the 30% of Americans that have less than $1000 in savings, that may feel like an impossible feat.

You probably already know about the solution to this potential problem. However, you may be wondering “is renter’s insurance worth it?” After all, it’s one more bill you have to pay and your budget is already tight.

Let’s look at some reasons why it is worth it.

1. It Doesn’t Cost Much

Renter’s insurance premiums are actually extremely affordable. The average cost of renter’s insurance is only $187 a year! For the peace of mind that renter’s insurance can bring, that’s a small price to pay.

2. Your Apartment Community May Require It

The apartment community carries insurance on the building and grounds. To protect themselves, many landlords are now requiring that tenants show proof of having a renter’s insurance policy. They want to ensure they won’t be liable for your stuff if something happens.

In some cases, the apartment’s insurance company may even require it.

3. It Covers Your Belongings, Period

Renter’s insurance policies are designed to cover your belongings. Since belongings are mobile, they don’t necessarily have to be in your home to be covered. Many losses due to theft and other covered circumstances apply when they’re in your car, or even if you’re traveling. Just be sure to understand what constitutes “covered circumstances” on your particular policy.

By the way, if the loss is found to be due to your own negligence or deliberate action, they may not cover it. So don’t go burning your favorite music collection for the insurance money.

4. You’ll Get Liability Coverage

What happens if someone is injured while in your home? Or what if you accidentally injure someone? Or your dog bites someone? These are all examples of situations in which you would be liable and responsible to pay medical bills etc for the injured person. We all know how quickly medical bills can get expensive so you don’t want to be on the hook for those.

Basic renter’s insurance typically provides up to $100,000 in liability coverage. Of course, you can always opt for more for the extra peace of mind.

5. Unexpected Living Expenses

You never know when disaster will strike. What happens if your apartment floods and you need somewhere to live while they replace the floor? A hotel or motel might seem like a good option-until you start adding up the cost for a week or two’s stay.  With renter’s insurance, you won’t have to worry about it. Your policy will typically cover the cost until you can return to your apartment.

So…Is Renter’s Insurance Worth It?

What do you think? Is renter’s insurance worth it? There are a lot of benefits that come with a very affordable policy. Since you never know what life can bring, why not take advantage of the peace of mind?

To check out more tips for renters and apartment dwellers, feel free to browse through the other posts on our blog!

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