If you are currently a renter or have ever rented an apartment or unit, you may or may not have obtained any type of renter’s insurance. In fact, according to the Insurance Information Institutes 2018 Poll, only 46 percent of renters had renters insurance. While the majority of homeowners have homeowners insurance protection, many renters fail to see the need or importance in investing in renters insurance. For some renters, they may feel invincible in believing nothing will happen to the rented building…until it does! All it takes is one catastrophic event to happen to make you realize that without it you could be financially devastated. Many others have preconceived notions about why they don’t need or want renters insurance. In fact, most of those revolve around the many myths that surround renters insurance.
Some Typical Myths Involving Renters Insurance, but Not Limited to:
“I don’t need renters insurance since my landlord owns the building and has insurance.”
Many renters think since the landlord has insurance, they don’t need it. In actuality the landlord’s insurance will only provide coverage for the cost to repair/replace the building/dwelling and does not provide coverage for the contents inside the apartment or unit. Furthermore, if someone gets injured inside your rented location, it may be your responsibility depending on how and why the injury happened. The landlord’s insurance may kick in for injuries to others injured outside on their property depending on whether the landlord contributed in some way to the injury. (ex. Faulty stairs or any other negligence shown on behalf of the landlord)
“I can’t afford Renters insurance.”
This is truly a misconception about renters insurance being too expensive. For $144 per year, you can have a standard renters insurance policy, which breaks down to only $12 a month. Think about that for a minute. For $12 a month you will typically get adequate insurance protection ($30,000) for your contents (clothes, computers, furniture, etc.) along with $100,000 in liability coverage for your protection for claims brought by anyone injured while inside your rental unit. Imagine that a fire in your apartment burned all your possessions and you failed to have renters insurance. Could you afford to pay for all your personal belongings out of pocket?
“I don’t own many things so I can replace them if needed.”
While you may think that, take a look around you and make an inventory of your personal possessions to include books, televisions, computers, clothes, kitchen accessories, and furniture. You may be surprised how fast those items add up. Also, keep in mind that a typical renters insurance policy also provides coverage for those guests injured in your rental unit up to the limits of liability. Those types of liability claims can result in exorbitant amounts of medical bills. Can you pay for that out of your own pocket?
Final Thoughts on the Peace of Mind You Deserve
For approximately $12 per month, you won’t have to worry about your contents (up to the stated contents limit) should something happen or a guest who falls on your kitchen floor due to your rug, up to the acquired limits of liability. Furthermore, it also can provide coverage for stolen property (at home or away from home) and applicable living expenses (during repairs) should you have to live elsewhere due to a covered loss that deems your place uninhabitable. Ask yourself whether you can afford NOT to have it. If you have any questions regarding renters insurance, don’t hesitate to call us at Twin City Insurance at 828-464-2643.