The main reason we purchase an insurance policy is to protect ourselves in the event something goes seriously wrong in our lives. Fortunately for most, the day never comes where we have to face a total loss when it comes to the personal belongings we have collected over the years. However, should we be forced deal with all of our possessions being wiped out due to a fire, a natural disaster, theft, or even vandalism it would be nice if we didn’t have to replace everything out of our own pocket.
If you have a renter’s insurance policy then you won’t have to. Your belongings will be protected, if you set your policy up correctly, and your coverage should provide you with the funds to replace most, if not all, of the items that were damaged or lost. The sad truth is most people don’t bother to purchase a renter’s insurance policy when renting because they believe any number of myths that surround this type of insurance. It is unfortunate but because they never bothered to get the truth they are forced to deal with replacement costs entirely out of their own pocket.
Below you will find some common myths regarding renter’s insurance policies followed by the truth. Hopefully you will at least find these truths to be reason enough to look into a policy that can protect your stuff.
Landlords have insurance so I don’t need any.
Of course your landlord has an insurance policy but their policy is in place to protect them and their property, not yours. Generally, landlords will have their building insured and will carry a policy to protect them if they are found liable for injury or loss but that is where their policy stops. If someone is hurt on the property due to your fault, you are liable. If your stuff is stolen or damaged, your landlord’s insurance will not cover it.
I can use my roommate’s insurance policy.
While there are policies that cover roommates, most likely the only belongings that are covered are the ones that are owned by the policy holder. Just because your roommate is smart enough to insure their belongings doesn’t mean you are protected by default.
I don’t have the money for insurance premiums.
Health insurance is expensive, so is automobile insurance. Renter’s insurance, on the contrary, is rather inexpensive. Depending upon the policy you choose you can expect to spend between $150 t0 $350 per year for coverage. When you break that down into monthly payments you see that it is not all that bad.
I don’t have expensive things so I don’t need insurance.
Fine. Even if you eat off of milk crates you swiped from the grocery store you can still be liable if someone is hurt when the plastic crate they are sitting on suddenly breaks. But in all seriousness, if you were to inventory all of your belongings: your television, computer, furniture, clothes, etc. you will most likely find that your inexpensive stuff would actually cost quite a bit to replace.
Where I live is safe from: crime, storms, fires, etc.
According to the US Department of Justice a person who rents is almost 80 percent more likely to be robbed than someone who owns their own home. While we may feel safe in a gated community or with an alarm, the fact is these are deterrents not fail safes against crime. Not to mention the fact that while you may live in an area that is not prone to disaster, that doesn’t mean you will never face one.