When I rented the new apartment back in February, one item that surprised me was renter’s insurance. I never purchased something like this before but it certainly caught my attention when I was told that it would be mandatory. At the time, I contemplated on the extra $18 dollars a month and I decided to get it for the peace of mind but I would never looked into it if it wasn’t mandatory.
Why Renter’s Insurance
I just saw an article today stating that most people don’t buy renter’s insurance even if they are required. If you are one of them, read about why you would want to reconsider.
Inexpensive for the Value It Provides
Don’t get me wrong. $18 every single month is money I would rather save, but the same amount can get as much coverage as $30,000 just in case anything happens. You are also getting a peace of mind because having to replace everything you’ve bought in the apartment is a major financial setback.
Renter’s Insurance doesn’t just cover replacing your belongings. Since renters are responsible for problems they create including accidents, having insurance allows them to pay for unexpected charges just in case something bad happens. Can you imagine having to pay for all the appliance and remodel of the whole kitchen if you have a fire caused by putting the wrong container in the microwave?
What You Need to know About Renter’s Insurance
Read the Fine Print
Different companies cover different things. Most cover fire and theft but many don’t cover water so don’t just look at the monthly price as water leaks are a major cause of lost in apartments (especially in older ones).
Also check on what type of belongings the policy covers because some don’t cover items like high priced jeweleries.
This is important because someone can sue you if they were injured from something that started in your apartment (e.g. a fire). Better safe than sorry.
Some policies will cover you to replace all your belonging while other policies will only give you back the cash value of how much these things are worth. Obviously, you would want to get a policy that will replace the items because of depreciation.
Do Your Homework.
Don’t forget to look around and compare different companies that want your business. As stated above, companies provide different rates as well as different coverage so make a chart and start comparing.
If you rent an apartment right now and never thought about renter’s insurance, start now and examine whether it makes sense for your circumstances. It’s an additional expense that you didn’t have before, but I strongly recommend you to at least give it serious consideration.