Insurance is mandatory these days for everything you hold value. You need health insurance to cover any potential medical bills. Home insurance is mandatory if you own your house, and the same is true when you have a car. But if you’re renting an apartment or a dorm, you also need renters insurance to protect your property.
It’s amazing how many people aren’t aware of this fact, and that’s especially a trend among young adults in their 20s. One survey found that among the 23 to 29 years old age group, more than half don’t have any renter’s insurance at all. That’s an extremely bad idea regardless of the reason, simply because there’s really no good reason not to have one.
If you still don’t have renter’s insurance when you’re renting a place to live in, you need to be aware of the following facts:
- The insurance policy will pay for the repair or replacement of your personal property when they’re damaged by a “peril” that’s covered in your policy. For most renters, the most commonly feared perils are a fire and a break-in. These are the kinds of problems which can cause you to lose everything you own.
- You may think your possessions don’t really amount to much, but a more careful calculation of all the items you own will open your eyes. Do you know how much a bed and a mattress cost these days? Then there’s your couch, as well as your dining table. You also probably have electronic items, including such staples as an LED TV and a nice computer. Then you need to consider your clothes, and perhaps your jewelry and accessories as well. Even if you’re a guy without a lot in terms of jewelry, you may still have pricey sunglasses and wristwatches, along with costly leather shoes and basketball sneakers.
- There’s no good reason to skip out on insurance due to concerns about the cost, because it doesn’t cost you a lot of money at all. On average, it’ll set you back about $20. You may even pay less per month, for coverage ranging from $30K to $50K, with a deductible of $500 to $1,000. What that basically means is that you’re covered for the cost of all your possessions, for the monthly price of a few cups of coffee or a single takeout.
- You can also reduce the cost of your insurance if you don’t live in a high crime neighborhood and if you put in sensible safety precautions in your place. This means having a smoke alarm, fire extinguishers, and sprinklers can reduce the premiums as these will help protect your property. The same is true if you put in deadbolt locks.
- This kind of insurance also protects you when you’re held liable for any injuries that other people may suffer while they’re in your apartment. The policy may also contain medical payment coverage, whether or not you’re held liable for that injury. Usually, this means your insurance pays out if your pooch bites a guest in your home. That’s why many insurance companies ask about whether you own a dog, especially if it’s a breed known for aggressive behavior. In some cases, you may get renters insurance only if your dog is specifically not covered by the policy.
- When you do suffer a fire in your place or any other covered problem you may be required to live in another place while the apartment is repaired. The cost of that relocation can be reimbursed by your insurance.
Basically, it offers a lot of protection at very little cost. Getting renter’s insurance is simply a no-brainer, so get smart and get one now if you’re a renter.