If you are renting an apartment or home, don't assume that your landlord will replace your personal items in the event of a claim.
Many polls show that only one-third of all people who rent actually carry renters insurance. The most common remarks for not obtaining a policy are:
1. We don't need it - Tenants assume that their belongings aren't really valuable so what's the point of insuring them. The average tenant has over $20,000 of possessions at any given time.
2. It won't happen to me - Do you really want to take a gamble on losing everything and having to start over with nothing? It's hard enough to put the pieces back together when you have coverage let alone going out of pocket to replace all of your belongings.
3. My landlord will cover me if anything goes wrong - This is completely false and tenants should never assume that they will find coverage from someone else.
4. Renters insurance is too expensive - with an average cost of around $15 per month, renters insurance is actually very affordable. And combining this coverage with your auto insurance means you will receive additional discounts.
5. It only covers my personal items - Incorrect. A renters policy actually affords many different coverages besides your personal property. Two additional coverages that are normally included are "additional living expenses" which will pay you to find other housing in the event that your house is uninhabitable and "personal liability" which provides coverage in the event that you are sued by another person. This can happen as a result of a dog bite or a simple slip and fall occurrence at your residence.
And don't forget that there are some great additional coverages that you can add to your renters policy as optional protection such as
> Identity theft- (protection if your identity is stolen)
> Business property- if you keep work tools at home
> Water / sewer backup- very common claim for tenants
> Scheduled jewelry- added coverage for valuable items
Renters insurance is not just coverage for your personal property and can be a very affordable way to protect you and your family.