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Renters Insurance Myths That Need To Be Put To Rest

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With private renting at an all-time high, The saying “Generation Rent” is starting to really catch on.  This guide is written to help squash some of those foolish rumors and myths about renters insurance, and why if you are renting and not insured is very foolish. Protection is always key.

For roughly the cost of a few movie tickets each month, renters insurance can protect your personal belongings and save you from a legal, or medical expenses associated with an accident within your home, apartment, or condo. Many renters overlook this insurance policy thinking it’s too expensive annually or just flat-out unnecessary. When you actually break down what type of headache it protect you from and how cheap the monthly cost is, it should be a no brainer. Do you not like to be safe, or is driving without a seat belt something you enjoy doing constantly?

Let’s go over four very common myths about renters insurance that should inspire you to get such coverage if you are currently without.

1. “I don’t have enough stuff to need insurance coverage”

No matter where or how you live, your property is susceptible to many damages. It could be fire, theft, or even a broken kitchen appliance; many experts say there isn’t a scenario in which a tenant should go without renters insurance. So why would you?

You would be shocked if you actually sat down and took the time to add up the total cost of all your personal belongings. Theft is a real issue, and knowing that if something were to happen while you were away or on vacation will give you the peace of mind that you deserve. Do yourself a favor and keep reading, if you are already not convinced that you need renters insurance.

2. “Since I am a renter, my landlord will cover property damages.”

A landlord could potentially partner with an insurance company to offer renters insurance to tenants, but more frequently, it typically only protects the building itself. “After acquiring a rental housing unit, landlords change their insurance policies from a traditional homeowners policy to a rental policy, and when they do that, it only covers just the structure, not the content or any of the tenants’ belongings,” says James Emory Tungsvik, president of the National Association of Residential Property Managers.

“Say you just bought a few hundred dollars’ worth of frozen food and you stuck it in the freezer that the landlord owns, and it breaks down, spoiling all the food,” Tungsvik says. “If you wanted coverage for that lost expense, the landlord would not responsible for it. That would be part of renters insurance.” That analogy should help you wrap your mind around the idea a bit more clearly.

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3. “Renters insurance only covers my personal belongings.”

The common saying “accidents happen” rings especially true with renters insurance. A flood in your apartment could even damage other tenants property, and the buildings amenities, and this a prime example of how this insurance can save thousands. Unexpected things happen and wise people try to prepare for the unknown. “For example, if your bathtub overflows and water seeps into the apartment below, damaging your neighbor’s furniture or rug, your renter’s policy will cover the damage up to your liability limits,” Lyons says.

4. “Renters insurance is too expensive.”

Wrong! It’s actually pretty affordable considering how much you benefit. Let’s break it down: in most cases, annually you are looking at about $185, monthly a tad under $20, and daily the cost of roughly 50 cents. What a steal.

Many insurance providers offer packages that include discounts when you bundle a few plans together, so realistically it could be cheaper if you are loyal to a certain provider. Everyone’s a winner.

Still, be wary and don’t jump at your first offer. Browse around and be a smart avid consumer — prices will vary just like with any other product or service.

How to choose a renters insurance policy

Renters insurance coverage needs are different for every individual, based on factors like age, location and protection needs for things like natural disasters. But in general, there are two important areas to understand when choosing a renters insurance policy: what the policy covers and whether that coverage is actual cash value or the total replace cost.

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