Yes, You Do Need Renters Insurance

The average renters insurance policy costs between $15 and $30 per month, yet the majority of renters still go without it, thinking (wrongly) that it is too expensive. But consider the cost of replacing all of your worldly possessions or being sued for an accident that happens in your apartment. Now that’s expensive!

Renters insurance is affordable protection for your possessions in the event that they are damaged or destroyed by fire, smoke, lightning, vandalism, theft, explosion or windstorm and water damage. (Note that renters insurance does not cover damage due to floods.) It also provides liability coverage that protects you financially if you, a family member or a pet injures someone at your home or somewhere else. If you are sued, your renters insurance may pay for your legal defense as well as any court-ordered damages or settlements that you must pay.

Renters insurance also pays for temporary living expenses if you can’t live in your apartment after a fire or other disaster. While you are displaced, your policy will cover hotel bills or temporary housing expenses, restaurant meals and other expenses you incur while your home is being repaired or rebuilt. What’s more, your renters policy will provide some coverage for your valuables like jewelry or electronics. But if you have a large amount of valuables or one or two particularly valuable items, you might need to purchase a scheduled personal property rider to make sure that you have enough coverage for those items.

Renters insurance can be extremely affordable. Most renters insurance policies are eligible for discounted rates if you have a security system, smoke detectors, deadbolt locks, and good credit. In fact, if you place your auto and renter’s policy with the same company, the ‘multi-policy’ discounts that would apply may almost cover the cost of the renter’s policy!

Have you been going without renters insurance? Is it time for you to get the coverage you need?