5 Myths About Renters Insurance

The following is a guest post. Enjoy!

They say that one way to predict the future is to invent it. And to invent a future where your property is safe includes buying yourself a renters insurance policy. Some people like to put this off, thinking they can settle the matter quickly if the need arises. But what happens when an accident or natural disaster strikes tomorrow? By then, it’ll be too late. Don’t let yourself reach that point. Set safety measures in place to protect yourself and your property in the future.

But maybe the problem goes deeper than procrastination? Maybe you’ve heard some things about renters insurance that are simply untrue. If that’s the case, you can start your search for renters insurance on the right foot by taking a look at these five common myths about renters insurance.

1. It costs an arm and a leg. This couldn’t be more false. While car insurance premiums can be awfully expensive, that’s not the case with renters insurance. According to US. News, you only need to set aside about $185 per year or just $20 per month for renters insurance, certainly nothing that’ll bleed your pockets dry.

If you’re afraid renters insurance will wreak havoc on your budget and drain your Happy Fund, no worries. With renters insurance, you’ll be able to spend so much less to secure your future peace of mind and security. Also, plenty of insurance carriers offer discounts with even lower premiums. If you already have an insurance policy, ask about bundling. You can also install safety measures for increased savings. Things like a deadbolt, fire alarm or a fire extinguisher will chip away at your premium cost.

2. It’s only great for stolen property. According to Lifehacker, a renter insurance policy often includes different types of coverage that you can choose from.
   1. Personal property coverage. Want coverage for everything you use daily—from your shoes and clothes, to your furniture and appliances. You can throw in any jewelry pieces or even that grand piano or cello you want insured. If you have items far more valuable though—a priceless painting for example—try looking for extended coverage.
   2. Liability coverage. Let’s say someone incurred an injury or suffered property damage because of an accident you or someone from your household caused. Maybe your waterbed sprung a leak and that seeped into the apartment below, causing damage to their couch and floorboards. Your renters insurance will cover their expenses.
   3. Medical expenses for others. Say you and a friend were trying to fix something inside your apartment—DIY style—and your combined handiness level wasn’t what you both pictured. One thing leads to another and your friend ends up with a deep cut that requires stitches. You’ll be glad you have renters insurance. This way, your friend can protection from medical fees no questions asked.
   4. Additional living expenses or loss of use. In case a natural disaster devastates your home and you need living expenses to help pull you through the next couple of days, then this coverage is the right one for you. So if you live in an area where you know you’ll have to evacuate your home once or twice a year, then being provided with living expenses ensures you get all the help you need. Also, don’t forget to find out how long the living expenses will last.

3. My landlord will give me coverage for my belongings. Unless this condition is specifically expressly in the contract—one you’ve verified with your landlord—then don’t assume you’ve got coverage for your property. It’s more likely that your landlord will only be responsible for any structural damage in the apartment. But coverage for any damage to your property won’t be part of the package.

4. It only covers my personal possessions. Not really. A lot of renters insurance policies offer coverage for the following: theft, fire and water damage, vandalism, smoke damage and lightning. So if you live in an area where vandalism or theft are rampant, then you’ll have to brace yourself for a quote that’s higher than the standard.

5. I don’t need insurance coverage because I don’t have that much stuff. Believe it or not, a lot of people think they don’t have enough things to justify the need for renters insurance. But try making a list of all the things you own alongside their market value and you’ll end up realizing that you have a lot more stuff and associated value than you thought.

Next time you hear someone spout off about the uselessness of renters insurance, you’ll have these myths to happily debunk.