Many renters believe they do not need insurance because their landlord’s policy will take care of any issues. In reality, this is not the case. Regardless of whether you’re living off Ramen Noodles or living a life of luxury, here’s why you should get yourself a renters insurance policy.
1) Liability – Your landlord’s policy will cover the building and apartment itself, but you’re liable if a visitor gets hurt, whether they’re invited or not. Legal fees and payouts can get expensive, even if you think you have enough to cover expenses. Lawyers can come after you for restitution regardless of your wealth. Even if you don’t have a lot of assets, it’s important to protect yourself with liability coverage.
2) Property Damage – If you accidentally leave your candle burning and it starts a fire, your policy will kick in for the repairs and replacement costs. If you put too much detergent in the dishwasher and it overflows and leaks through the floor into the apartment below, your renter’s insurance will cover you. Property damage coverage will protect you from fires, water damage, etc. Even if the damage spreads into other apartments, you will be covered.
3) Belongings – You might be surprised how quickly your bed, Xbox, clothes and collection of DVDs add up. It’s important to be able to replace your belongings if something were to happen to them. Even if you’re not worried about theft, there’s always a risk of a fire from your roommate’s lack of cooking skill.
Most renters policies cost between $10 and $20 per month. If you also have an auto insurance policy, you may be able to get discounts on both policies with a combine & save deal.
The average person has about $20 to $30k worth of personal belongings. Would you be able to replace all of your stuff if your apartment burned down?