For approximately the cost of a delivered pizza dinner each month, renter’s insurance can protect your personal belongings and save you from legal or medical expenses associated with an accident in your home. However, many renters believe that taking out the insurance is unnecessary or too expensive.
Here are some common misconceptions about renter’s insurance,
Myth #1: Very Little stuff which needs insurance coverage
If you think you do not have enough stuff to warrant a renters insurance policy then we suggests you go around your residence, room by room, and take full inventory of your belongings before making a decision. Most people usually only think of the big-ticket items, like electronics, but if you really think about it, it's so much more in that. For example, in your kitchen, it's not only the appliances, but the towels, dishes, utensils and food, too. We find that the average renter in a two-bedroom apartment has about $30,000 worth of stuff.
Along with evaluating how much your belongings cost, it's important to consider how much you personally value those items. In some situations, how much you care about your stuff may override cost in your decision to take out a renters insurance policy.
Myth #2: Your landlord will cover property damages
Occasionally, a landlord may partner with an insurance company to offer renters insurance to tenants, but more frequently, the insurance policies that landlords hold for their properties only protect the building itself. Even if the landlord owns appliances or other items within your rented home, he or she is not responsible for damages they inflict on your personal property. If you wanted coverage for lost expense, the landlord would not responsible for it. That would be part of renters insurance.
Myth #3: Renters insurance only covers your personal belongings
Accidents, such as a flood in your apartment, may damage other tenants' property and can be costly. Renters insurance can protect you from these situations and help cover those unexpected costs. For example, if your bathtub overflows and water seeps into the apartment below, damaging your neighbor's furniture or rug, your renter's policy will cover the damage up to your liability limits.
This liability protection can cover medical or legal expenses associated with your home. If you are entertaining at your home and, say, someone trips over a loose rug or injures his or herself in your apartment in some way, could you afford to pay the potential medical expenses associated with that, but in the event of a lawsuit, could you pay the legal expenses as well? A typical renters policy will cover that full range of risks that any renter could be exposed to.
Myth #4: Renters insurance is too expensive
Unlike car insurance or a typical home owners insurance policy, a renters insurance plan is not a large additional monthly cost. You are probably looking at about an additional $185 a year. For less than $20 a month, all your personal property is protected. Policy premiums can vary between individuals, providers and location, but as a whole, renters can expect to pay about 50 cents per day for a renters insurance policy.
However, even though renters insurance is less expensive than homeowners insurance, it could still become expensive if consumers are not careful, regardless of the policy type. You have to shop around. It is recommended that you call your state's insurance department and ask them to recommend the top five renters insurance providers in your state. Then give those places a call to get some quotes before making a final decision.