I think it is obvious when you own a home that you need homeowner’s insurance. However, the need of renter’s insurance may not be so obvious. Every renter should have this form of insurance. It is inexpensive and may cost on average from $10 to $20 a month depending on the amount you are insuring.
What is Renter’s Insurance?
Renter’s insurance is a form of protection you have on your property (furniture, jewelry, electronics, etc.) while you live in your rental space. It insures your property if your place is damaged by a fire or if your place is burglarized. It is hard to imagine and we like to think, this will never happen to me, but it does happen and you should be prepared.
What Renter’s Insurance Does Not Cover…
Always read the fine print. Your basic renter’s insurance will not cover everything. For example, it does not cover flood damage. In order for your property to be covered by flood damage you need flood insurance. (Yes there is insurance for everything, ha). If you do not know if you live in a flood area, contact your property management and they should let you know.
Eh, you may want to check with your landlord. But chances are your “stuff” is not cover under their insurance. Their insurance will cover structural damage (exterior parts of the home). If you have valuables inside the home, you may want to look into obtaining this type of insurance.
What if I have a roommate?
You may need separate policies if you have a roommate. If you have renter's insurance then your "stuff" is covered. Most insurance companies will insure individuals or families on one policy, not unrelated individuals, ie. roommates.
Discount Double Check
Make sure you shop around. If you have auto insurance, this insurance provider should be your first stop. Most of the time, they will give you a discount for having more than one insurance policy with them. It never hurts to ask!
I Don’t Need Renter’s Insurance!
Ok, you say you don’t need renter’s insurance? When you get home or if you are home take a seat on your sofa and look around. What if everything was destroyed by a fire or your iPad or laptop you are reading this blog on is stolen. Do you have the cash to replace it? Do you have enough cash to replace the sofa you are currently sitting on?! The questions are rhetorical but hopefully it will make you think twice before saying no.
Have a great day!