No matter how prepared you are, life comes with unexpected risks. Be it by theft or a flood or a malfunctioning clothes dryer, in a moment you could face the loss of your personal belongings or your home. Can you afford to bet against these risks by not having renters insurance?
Too many people decide against renters insurance because they simply think their stuff is just not valuable enough to protect. Is this really the case?
Your stuff is worth more than you think
Look around at the possessions in your home: computer, bike, clothes, television, iPhone, that strange Angolan scarf your mom gave you. Start adding up the value of how much it would cost to replace all these items. It’s pretty high, right?
According to the USAA, new renters typically have about $20,000 worth of belongs. Not only is that a ton of money but it’s the last thing you’d want to worry about in a time of crisis.
That’s where renter’s insurance comes in.
Replacement Cost Coverage
The ideal policy is one that has replacement cost coverage over cash value.
A replacement cost coverage policy would pay out the cost of buying a new item to replace the ones you lost. A cash value policy would instead pay the cash value of the item lost at the time of its loss.
These policies mean the difference between a payment for a brand new computer and a payment based on the current cash value of your five year old computer.
Protection against severe natural events
Did you know that the United States has more tornados than anywhere else in the world? Ensure that your policy not only covers you for fire but also covers you in case of flooding, earthquakes, tornados, and any other nature disaster.
Coverage doesn’t just extend to your home
Renters insurance can also be extended outside of your home. If someone breaks into your car and steals your bag from inside, your renters insurance would cover that too.
It covers your neighbor’s property
(What would happen if your washing machine goes haywire floods into your neighbor’s apartment? Renters insurance would include a liability to cover you in these instances for any damage incurred.
This policy should also cover you against a lawsuit should someone hurt themselves in your apartment. This is not just limited to guests, service providers and repair individuals would be covered too in case of injury in your property.
Landlord insurance is not enough
Your landlord’s insurance may cover damage to the carpet or to the walls but it will not cover your personal belongings.
Renters Insurance can start as low as $12 to $15 dollars a month. A small price to pay when you consider the coverage it affords.