When people think of renters insurance, they frequently do not believe they ever need it. It is true that most people who buy insurance probably will never need it yet, everyday people are filing insurance claims in the face of the unexpected. People purchase insurance in hopes that they would never need to use it, but knew that it is a smart decision to have a policy protecting them should the need ever arise.
Myth #1: My landlord is covered therefore I do not need insurance coverage.
You better rethink about how insurance policies work. Why would the landlord be responsible for your belongings? Granted, the damaging event took place in a residence he owns, but if the house ever burns, his policy is going to be used to rebuild the home. It will not be used to compensate you on buying a new bed or couch. Therefore, you should expect that if the home gets damaged, you will not receive any type of payment for damage that your possessions incur. The worst part about it is if the damage was your own fault, you are likely going to be responsible for covering the expense of the repairs.
Myth #2: I have a safe home. I really don’t need insurance.
Just because you live in a nice apartment complex or in an affluent neighborhood probably does mean that your chances of having items stolen are less likely. However, this does not mean that it could not happen. Again, policies are bought for those “just in case” type situations. They are never purchased because you expect things to happen. The coverage may not be just for covering stolen items, but could be used if someone sues you if they hurt themselves in your home. It is not typically the landlords insurance policy that will cover this type of thing.
Let me be more blunt on the topic. Weather, natural disasters, and fire do not care about how safe your home is. You can still have your water pipes burst in freezing weather. Hail and wind do not discriminate based on the location of where you live. Cars can still come around a corner and crash through the wall of a home. You may not have intended on these things happening, but the point of these examples is that you should be aware that accidents do occur. You should note, however, that flood and earthquake insurance policies can often be separate policies from renters insurance.
Myth #3: I do not have anything that is valuable
More than likely if you are reading this you have a computer, you maybe own a camera, a phone, clothes, and possibly even have some old furniture with old appliances throughout the home. The prices of these items alone can add up to a sizable amount. It is very likely that you have jewelry or other types of things that could add up to a pretty penny if you are expected to come out of pocket to pay for these items on your own.
The vast majority of policies will cover things like electronic equipment (including DVD’s and CD’s). You will also find that they will cover furniture, clothing, books, photography equipment, sports equipment, among several other items. Actual values are taken into account, but things like pictures, jewelry, and firearms that may have sentimental value, you may not get as much as you would like for them from your policy.
Myth #4: It is too expensive to get Renters Insurance.
The average person who is renting is able to afford some type of policy of renters insurance. Generally, a basic policy can range from about $25,000 to about $30,000. They will frequently come with $500 deductibles. These policies can be as little as $20 per month. Yes, you heard it right. That is a very small price to pay if an accident does happen. If you are running into a problem of finding cheap renters insurance, you should perhaps install smoke alarms and set out fire extinguishers. The insurance companies view these as safety measures that could help drive down the cost of a policy. It could be a wise investment.
