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Do I really need renters insurance?

Renters insurance is an under-utilized product that has the ability to save you (and your stuff) a thousand times over. A growing number of property management companies require renters insurance of their tenants. But for many, the ball is in the renter’s court.

So, do you really need renters insurance or is it a gimmick? Let us break it down for you.

 

Renters and homeowners insurance cover the same important things.

And a lot of other weird things, too. But the BIG THREE include:

 

Coverage for personal possessions including clothes, jewelry, luggage, computers, furniture, and electronics lost to:

  • Fire
  • Smoke
  • Theft
  • Explosion
  • Falling objects
  • Vandalism
  • And more—each policy is a little different.

 

Liability coverage in case someone or something is injured on your property by you or another covered person. Most policies will cover $100,000+ in legal fees, court judgments, and no-fault medical expenses.

 

Additional living expenses in the case your home becomes uninhabitable by way of a covered hazard. This may include travel, hotel, food, etc.

 

Liability should be your main focus.

A renter who doesn’t own much may shrug off insurance, content with the idea they may lose their possessions in a fire or burglary and move on without them.

But the relative value of their possessions should be less of a factor in choosing renters insurance than the probability of their neighbors or friends filing lawsuits after being injured or having their property broken or stolen.  

Lawsuits and legal fees can cause financial devastation. With renters insurance, you can rest assured you’re protected.

 

It’s way cheaper than your phone bill.

Because renters insurance is so under-utilized, premiums and barriers to entry have remained low. In fact, the average cost of renters insurance in 2017 was only $16/month or $192/year. That’s 5 times less than buying a Starbucks drink each weekday.

Getting renters insurance is really a no-brainer. And just like any other insurance, shop around and read the fine print.