Thinking of skipping or canceling renter’s insurance in order to save money? Think again!
Renter’s insurance is the #1 most important coverage for anyone who is not already covered by homeowner’s insurance.
Let’s say it again for the folks in the back: If you do not own your current living space, you need renter’s insurance.
“What’s the big deal?”
Unless you personally have homeowner’s insurance or are legally married (not just engaged) to someone with homeowner’s insurance, your personal items are not covered by an insurance policy. Meaning, if there is a flood, fire, tornado, accident, or Act of God of any kind, your items are gone forever and you’ll pay out of pocket to replace them.
Your landlord’s insurance policy only covers the actual building and any appliances/features owned by the landlord in your rental space.
“Doesn’t it cost a lot?”
No. The average policy is around $15 per month ($180 per year), and now there are new companies like Lemonade boasting rates as low as $5 per month. Even if you underestimate the value of ALL your personal belongings in your living space, the cost is no comparison (Think: Computer, phone, clothes, shoes, dishes, furniture, etc.).
Your car insurance company usually also has renter’s insurance, which can help you save money by bundling policies.
“Doesn’t it just cover my stuff?”
No. If your policy includes liability coverage (and you should definitely have it), you are covered if a guest gets injured in your apartment or if you accidentally burn half of your kitchen down attempting your own cooking show. Your out-of-pocket costs can escalate quickly if you have to repay any medical bills, legal expenses, and/or repair costs.
Bite the bullet and get renter’s insurance now. Tree falls through your roof? Covered. Pipe bursts in the winter? Covered. Break-in? Covered.
Your future self and wallet with thank you!