The following guest post is by Allied Cash Advance.
Do You Need Renters Insurance?
Assuming You Don’t Can be Costly!
Apartment dwellers and others who rent their living quarters often assume that they don’t need to buy renters insurance. That can be an expensive mistake.
If you rent your home, chances are you need a renters insurance policy. Contrary to what a lot of renters assume, the coverage a landlord carries on the building itself does not cover tenants’ belongings. That means your furniture, electronics, clothes, and other belongings wouldn’t be covered in the event of a fire, storm, burglary, or other loss. Renters insurance provides other important protection as well, and it’s more affordable than you may think.
The Case for Renters Insurance
- It protects your stuff. Take a look around your apartment or rented house. Make a quick list of the things you own and how much it would cost to replace them all. Include small appliances, cookware, DVDs, jewelry, and linens as well as big-ticket items. Even if you’re young and just starting out, the total replacement cost can quickly reach tens of thousands of dollars. If you were to lose everything, would you have enough money to replace it? [1]
- It may help pay for your living expenses if you have to temporarily stay somewhere else. If your place is being repaired or rebuilt, where will you stay? Policies typically include Loss of Use coverage which helps pay expenses for food, hotel bills, and other costs associated with being temporarily displaced from your home.
- It protects you from liability. You invite some friends over for dinner. One of your guests slips on a puddle of spilled coffee in the kitchen and breaks his ankle. Liability coverage included in most renters policies would cover injuries to others that happen in your apartment or rented home, as well as non-auto accidents caused by you that occur elsewhere.
- It costs less than you think. Premiums for renters insurance average $15 to $30 per month, depending on the size of your place and the possessions you own. [2]
More and more landlords are requiring their tenants to carry renters insurance. Even if yours doesn’t purchasing a policy can provide important financial protection and add to your peace of mind. The coverage isn’t too complicated, but there will be a few key decisions to make. You may decide on a higher deductible in order to reduce your premium, for example. Another key decision will be whether to carry replacement cost or actual cash value (ACV) coverage. A licensed insurance agent can answer your questions and provide you with a quote on the coverage.
Donna Parshall writes articles for Allied Cash Advance about online commerce, responsible borrowing, investment, and budgeting – click here to learn more. Allied Cash Advance payday loans and cash advance are lent responsibly.
[1] “Renters Insurance Protects Your Property”. BankRate.com. Web. 27 May 2010. http://www.bankrate.com/finance/insurance/renters-insurance-protects-your-property.aspx
[2] “Renters Insurance: To Purchase or Not to Purchase.” National Association of Insurance Commissioners Consumer Alert. NAIC.org. Web. n.d. http://www.naic.org/documents/consumer_alert_renters.pdf
Good stuff! I find the concept of getting a renter’s insurance very interesting because there are things that we often consider necessary, but after weighing in the factors why they need to be considered we end up realizing their importance.
I agree with you MMY, furthermore, this is a subject seldom discussed. You don’t hear a lot about rental insurance that’s for sure.
I didn’t have renters insurance for a long time… and then my apartment burned down. It was NOT a fun experience. Luckily, it was the contractor’s fault (the roofers set the roof on fire while tarring), so they put me up in a hotel ( a really crappy hotel… ) Since then, I’ve had renter’s insurance.
In addition to protecting your “own” stuff, renters insurance can also protect you from liability against damaging other people’s stuff, ie. your downstairs neighbor when the toilet overflows. Some great advice – thanks.
My solution was basically to have nothing valuable when I lived in an apartment.
The liability thing is interesting though, that sort of thing is always a risk and you definitely want protection against that.