6 Reasons Not To Skip Renters Insurance – If the entire wardrobe of your apartment caught fire, could you afford to replace it? What about all your other furniture, your phone, and your laptop? If not, then you probably need to purchase renters insurance.
With the help of renters insurance, you can get coverage for your personal property and liability claims, which are not caused by the structural problems of the property.
Although renters insurance can’t stop horrible things from happening, with it, your life can be less difficult when unforeseen issues happen. However, if you are worried about the expenses, renters insurance may actually be more affordable than you may actually expect.
In fact, some people pay little to nothing. In this article, there are 6 reasons not to skip renters insurance and other important information.
6 Reasons Why You Should Not Skip Renters Insurance
According to our research, 60% of people in the United States don’t have renters insurance currently. Of those, about 20% said they haven’t purchased it because it’s too expensive, while 15% do not really know about it.
In this section is why you should not skip this coverage. Check out these reasons:
You May Have More Risk Than You Think
Even if you just got an apartment, your items may be more expensive and valuable than you think. Imagine coming home from work and finding your renter and all your property damaged by fire.
Purchasing new furniture, wardrobes, electronics, housewares, and high-value items such as collectibles, antiques, and jewelry will be too overwhelming.
According to our research, an average 2-bedroom apartment can contain over $25,000 worth of personal property.
With the help of renters insurance, you can choose the right amount of coverage you need based on the exact value of your items. Just so you know, the higher your limits, the more you will have to pay for premiums.
Your Landlord’s Insurance Won’t Cover You
Most landlords require their tenants to purchase renters insurance. However, if yours doesn’t require it, know that it is not because they got you covered.
Many people believe that, since their landlord already has insurance, it will cover their rented property damage. However, you need to know that this is not the case.
The landlord insurance will only cover the building structure but not the tenants personal items. If your TV gets stolen or your clothes are damaged in a fire, the landlord’s coverage won’t help in replacing them.
However, your renter’s policy may help in covering it. A typical renter’s insurance policy contains $100,000 worth of liability coverage.
This will help to pay for damages to your personal properties and legal expenses in case you are sued for accidentally causing injuries to a third party or damages to their property.
Protection For Your Finances
Renters insurance is a really good option for getting protection for your finances. You may be building an emergency fund, saving your house, or trying to get out of huge debt.
But due to a lawsuit after causing damages to a third party’s properties or causing them injuries, you may lose all the money you have saved up.
This type of coverage can help you out in dealing with the financial issues. Even if some unforeseen event happens away from your home, the policy will cover you.
Renters Insurance Can Help To Pay For Housing After A Disaster
Most policies offer what is referred to as additional living expenses or loss of use benefit. This coverage will help you pay for housing if you are forced out of your rented apartment by a covered damage (usually extensive water or fire damage).
Also, the loss of use coverage can help you pay for restaurant meals and other bills that are associated with living away from your rented home while it’s being repaired.
Offers Coverage For Belongings Away From Home
With the help of a renters policy, you can get coverage for your personal items even when you are far away from home. It will help cover if your phone gets swiped at a café or your laptop gets stolen. However, it is advisable to only file a claim for your lost item if the cost is worth more than your deductible. Also, you may have coverage for your storage unit items.
The Cost May Be More Affordable Than You Think
One of the reasons most people avoid renters insurance is the cost. These days, many people are looking for ways to avoid added expenses. According to our research, the average cost for renters insurance is about $12 per month and $148 per year.
However, if you have a vehicle, you can pay less by bundling the auto insurance with your renters insurance. Many carriers offer the multi-policy discounts.
Also, you may be eligible for discounts if your apartment includes burglar alarms, some detectors, or other security devices. If a covered damage occurs, you will likely be happy that you paid for the renters policy.
This insurance is the best defensive measure against things you do not have control over in life.
